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 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 Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Net income (loss)	$	452,598	$	315,265	$	1,298,205	$	764,102
Less: Net income (loss) attributable to noncontrolling interests, net of tax		20,864		17,890		60,194		50,896
Net income (loss) attributable to DISH Network - Basic		431,734		297,375		1,238,011		713,206
Interest on dilutive Convertible Notes, net of tax (1)		—		—		—		30,125
Net income (loss) attributable to DISH Network - Diluted	$	431,734	$	297,375	$	1,238,011	$	743,331

Weighted-average common shares outstanding - Class A and B common stock:
Basic		467,570		466,240		467,216		465,893
Dilutive impact of Convertible Notes		58,192		58,192		58,192		54,850
Dilutive impact of stock awards outstanding		233		814		344		896
Diluted		525,995		525,246		525,752		521,639

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network	$	0.92	$	0.64	$	2.65	$	1.53
Diluted net income (loss) per share attributable to DISH Network	$	0.82	$	0.57	$	2.35	$	1.42

(1)

For the three and nine months ended September 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. 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 September 30,
	2018	2017
	(In thousands)
Anti-dilutive stock awards	3,836	1,778
Performance based options	4,722	6,318
Restricted Performance Units/Awards	1,790	1,252
Common stock warrants	46,029	46,029
Total	56,377	55,377

2019 LTIP. On August 17, 2018, we adopted a long-term, performance-based stock incentive plan (the “2019 LTIP”). The 2019 LTIP provides stock options, which vest based on certain company-specific subscriber, operational and/or financial goals. Vesting of the stock awards is contingent on achieving these goals by December 31, 2023. On October 1, 2018, options to purchase approximately 4.4 million shares were initially granted under the 2019 LTIP, with an exercise price per share equal to the closing price of our Class A common stock on the date of grant.