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 3 3/8% Convertible Notes due 2026 issued August 8, 2016 (the “Convertible Notes due 2026”) and our 2 3/8% Convertible Notes due 2024 issued March 17, 2017 (the “Convertible Notes due 2024,” and collectively with the Convertible Notes due 2026, the “Convertible Notes”) 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 Ended				For the Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Net income (loss)	$	460,286	$	58,762	$	845,607	$	448,837
Less: Net income (loss) attributable to noncontrolling interests, net of tax		21,569		18,646		39,330		33,006
Net income (loss) attributable to DISH Network - Basic		438,717		40,116		806,277		415,831
Interest on dilutive Convertible Notes, net of tax (1)		—		—		—		30,125
Net income (loss) attributable to DISH Network - Diluted	$	438,717	$	40,116	$	806,277	$	445,956

Weighted-average common shares outstanding - Class A and B common stock:
Basic		467,425		466,019		467,036		465,717
Dilutive impact of Convertible Notes		58,192		—		58,192		53,152
Dilutive impact of stock awards outstanding		232		916		379		992
Diluted		525,849		466,935		525,607		519,861

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network	$	0.94	$	0.09	$	1.73	$	0.89
Diluted net income (loss) per share attributable to DISH Network	$	0.83	$	0.09	$	1.53	$	0.86

(1)

For the three and six months ended June 30, 2018, materially all of our interest expense was capitalized. See Note 2 for further information.

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,
	2018	2017
	(In thousands)
Anti-dilutive stock awards	4,084	1,536
Performance based options	4,921	6,896
Restricted Performance Units/Awards	1,926	1,281
Common stock warrants	46,029	46,029
Total	56,960	55,742