3.Basic and Diluted Net Income (Loss) Per Share

We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to DISH Network” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our Convertible Notes due 2026 issued August 8, 2016 and our Convertible Notes due 2024 issued March 17, 2017 were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of our Class A common stock. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of our Class A common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later). The following table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.


	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2017		2016		2017		2016
	(In thousands, except per share amounts)
Net income (loss)	$	58,762	$	438,062	$	448,837	$	850,006
Less: Net income (loss) attributable to noncontrolling interests, net of tax		18,646		13,959		33,006		26,012
Net income (loss) attributable to DISH Network - Basic		40,116		424,103		415,831		823,994
Interest on dilutive Convertible Notes, net of tax		—		—		30,125		—
Net income (loss) attributable to DISH Network - Diluted	$	40,116	$	424,103	$	445,956	$	823,994

Weighted-average common shares outstanding - Class A and B common stock:
Basic		466,019		464,803		465,717		464,589
Dilutive impact of Convertible Notes		—		—		53,152		—
Dilutive impact of stock awards outstanding		916		837		992		840
Diluted		466,935		465,640		519,861		465,429

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network	$	0.09	$	0.91	$	0.89	$	1.77
Diluted net income (loss) per share attributable to DISH Network	$	0.09	$	0.91	$	0.86	$	1.77

Certain stock awards to acquire our Class A common stock are not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive. For the three months ended June 30, 2017, the effect of the Convertible Notes is excluded from the computation of diluted net income (loss) per share attributable to DISH Network, as the effect is anti-dilutive. In addition, vesting of performance based options and rights to acquire shares of our Class A common stock granted pursuant to our performance based stock incentive plans (“Restricted Performance Units”) are both contingent upon meeting certain goals, some of which are not yet probable of being achieved. Furthermore, the warrants that we issued to certain option counterparties in connection with the Convertible Notes due 2026 are only exercisable at their expiration if the market price per share of our Class A common stock is greater than the strike price of the warrants, which is approximately $86.08 per share, subject to adjustments. As a consequence, the following are not included in the diluted EPS calculation.


	As of June 30,
	2017	2016
	(In thousands)
Anti-dilutive stock awards	1,536	1,826
Performance based options (1)	6,896	4,379
Restricted Performance Units	1,281	1,370
Common stock warrants	46,029	—
Total	55,742	7,575

(1)

The increase in performance based options as of June 30, 2017 primarily resulted from the issuance of stock option awards as of January 1, 2017 under a long-term, performance-based stock incentive plan adopted on December 2, 2016 (the “2017 LTIP”).