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VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
F-13 VONAGE ANNUAL REPORT 2015
The following table sets forth the computation for basic and diluted net income per share:
For the years ended December 31,
2015 2014 2013
Numerator
Income from continuing operations $ 25,035 $29,707 $29,427
Discontinued operations (2,439) (10,260) (1,626)
Plus: Net loss from discontinued operations attributable to noncontrolling interest 59 819 488
Loss from discontinued operations attributable to Vonage (2,380) (9,441)(1,138)
Net income attributable to Vonage $22,655 $20,266 $28,289
Denominator
Basic weighted average common shares outstanding 213,147 209,822 211,563
Dilutive effect of stock options and restricted stock units 10,963 9,597 8,957
Diluted weighted average common shares outstanding 224,110 219,419 220,520
Basic net income per share
Basic net income per share - from continuing operations 0.12 0.14 0.14
Basic net loss per share - from discontinued operations attributable to Vonage (0.01)(0.04)(0.01)
Basic net income per share - attributable to Vonage $ 0.11 $0.10 $0.13
Diluted net income per share
Diluted net income per share - from continuing operations 0.11 0.14 0.13
Diluted net loss per share - from discontinued operations attributable to Vonage (0.01)(0.04)(0.01)
Diluted net income per share - attributable to Vonage $ 0.10 $0.09 $0.13
The following shares were excluded from the calculation of diluted income per share because of their anti-dilutive effects:
For the years ended December 31,
2015 2014 2013
Restricted stock units 5,827 5,454 3,625
Employee stock options 13,600 18,428 25,437
19,427 23,882 29,062
Comprehensive Income
Comprehensive income consists of net income (loss) and
other comprehensive items. Other comprehensive items include foreign
currency translation adjustments and unrealized gains (losses) on
available for sale securities.
Recent Accounting Pronouncements
In January 2016, Financial Accounting Standards Board
(“FASB”) issued Accounting Standards Update ("ASU") 2016-01,
"Recognition and Measurement of Financial Assets and Financial
Liabilities". This ASU provide guidance concerning certain matters
involving the recognition, measurement, and disclosure of financial
assets and financial liabilities. The guidance does not alter the basic
framework for classifying debt instruments held as financial assets. This
ASU is effective for fiscal years beginning after December 15, 2017,
including interim periods within those fiscal years. Early adoption is not
permitted, with some exceptions. The adoption of ASU 2016-01 will not
have a material impact on our consolidated financial statements and
related disclosures.
In November 2015, FASB issued ASU 2015-17, "Balance
Sheet Classification of Deferred Taxes". This ASU simplifies the
presentation of deferred income taxes and requires deferred tax
liabilities and assets be classified as non-current in a classified
statement of financial position. This ASU is effective for fiscal years
beginning after December 15, 2016, including interim periods within
those fiscal years. Earlier application is permitted for all entities as of
the beginning of an interim or annual reporting period. This ASU may
be applied either prospectively or retrospectively to all periods
presented. We are currently evaluating the impact of adopting ASU
2015-17 on our consolidated financial statements and related
disclosures.
In September 2015, FASB issued ASU 2015-16, "Simplifying
the Accounting for Measurement-Period Adjustments". This ASU
simplifies the accounting for adjustments made to provisional amounts
recognized in a business combination and eliminates the requirement
to retrospectively account for those adjustments. This ASU is effective
for fiscal years beginning after December 15, 2015, including interim
periods within those fiscal years. This ASU should be applied
prospectively to adjustments to provisional amounts that occur after the
effective date of this ASU with earlier application permitted for financial
statements that have not been issued. We are currently evaluating the
impact of adopting ASU 2015-16 on our consolidated financial
statements and related disclosures.
In August 2015, FASB issued ASU 2015-15, "Interest-
Imputation of Interest". This ASU provides guidance not addressed in
ASU 2015-03 related to the presentation or subsequent measurement
of debt issuance costs related to line-of-credit arrangements. The SEC
staff stated that they would not object to an entity deferring and
presenting debt issuance costs as an asset and subsequently amortizing
the deferred debt issuance costs ratably over the term of the line-of-
credit arrangement, regardless of whether there are any outstanding
borrowings on the line-of-credit arrangement. We adopted this ASU
along with the adoption of ASU 2015-03 in the third quarter of 2015 and