LOGM 2017 Annual Report

net income by the sum of the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential common shares outstanding from the assumed exercise of stock options and the vesting of restricted stock units. The Company excluded the following options to purchase common shares and restricted stock units from the computation of diluted net income per share because they had an anti-dilutive impact (in thousands): Years Ended December 31, 2015 2016 2017 Options to purchase common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — Restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 114 65 Total options and restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 114 65 Basic and diluted net income per share was calculated as follows (in thousands, except per share data): Years Ended December 31, 2015 2016 2017 Basic: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,558 $ 2,638 $99,523 Weighted average common shares outstanding, basic . . . . . . . . . . . . 24,826 25,305 50,433 Net income per share, basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.59 $ 0.10 $ 1.97 Diluted: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,558 $ 2,638 $99,523 Weighted average common shares outstanding . . . . . . . . . . . . . . . . . 24,826 25,305 50,433 Add: Common stock equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 954 859 1,030 Weighted average common shares outstanding, diluted . . . . . . . . . . 25,780 26,164 51,463 Net income per share, diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.56 $ 0.10 $ 1.93 Guarantees and Indemnification Obligations — As permitted under Delaware law, the Company has agreements whereby the Company indemnifies certain of its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. As permitted under Delaware law, the Company also has similar indemnification obligations under its certificate of incorporation and by-laws. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director’s and officer’s insurance coverage that the Company believes limits its exposure and enables it to recover a portion of any future amounts paid. In the ordinary course of business, the Company enters into agreements with certain customers that contractually obligate the Company to provide indemnifications of varying scope and terms with respect to certain matters including, but not limited to, losses arising out of the breach of such agreements, from the services provided by the Company or claims alleging that the Company’s products infringe third-party patents, copyrights, or trade- marks. The term of these indemnification obligations is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these indemnification obligations is, in many cases, unlimited. Through December 31, 2017, the Company has not experienced any losses related to these indemnification obligations Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Con- tracts with Customers , and has since issued several additional amendments thereto (collectively referred to herein 65