Earnings Per Share

12 Months Ended

Dec. 31, 2016

Note 2 – Earnings Per Share

Basic earnings or loss per share is computed by dividing net income or loss attributable to MasTec by the weighted average number of common shares outstanding for the period, which excludes non-participating unvested restricted share awards. Diluted earnings per share is computed by dividing net income or loss attributable to MasTec by the weighted average number of fully diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as issued but unvested restricted shares and/or outstanding but unexercised stock options, as well as shares associated with convertible debt securities. All of the Company’s remaining stock option grants were exercised during the year ended December 31, 2016, and the Company’s convertible debt securities matured and were converted in 2014.

Dilutive shares associated with the Company’s convertible notes issued in 2009, aggregating $13 million in principal amount, were attributable to the underlying principal amounts and were reflected in the calculation of weighted average diluted earnings per share for the corresponding periods by application of the “if-converted” method, whereas dilutive shares associated with the Company’s convertible notes issued in 2011, aggregating $202 million in principal amount, were derived from the premium value of such convertible notes in excess of their principal amounts, as calculated using the treasury stock method. These shares were referred to as the “premium shares.”

If the Company reports a loss, rather than income from continuing operations, the computation of diluted loss per share excludes dilutive common stock equivalents. For the year ended December 31, 2015 the Company reported a net loss from continuing operations, which resulted in the exclusion of 563,803 weighted average dilutive common shares from the calculation of diluted net loss per share.

The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands):



	For the Years Ended December 31,
	2016		2015			2014
Net income (loss) attributable to MasTec:
Net income (loss), continuing operations - basic^(a)	$	131,263	$	(79,110	)	$	122,375
Interest expense, net of tax, convertible notes	—		—			181
Net income (loss), continuing operations - diluted	$	131,263	$	(79,110	)	$	122,556
Net loss from discontinued operations - basic and diluted ^(a)	—		—			(6,452		)
Net income (loss) attributable to MasTec - diluted	$	131,263	$	(79,110	)	$	116,104
Weighted average shares outstanding:
Weighted average shares outstanding - basic	80,372		80,489			79,953
Dilutive common stock equivalents	1,022		—			813
Dilutive shares, convertible notes	—		—			5,430
Weighted average shares outstanding - diluted	81,394		80,489			86,196


(a)	Calculated as total net income (loss) less amounts attributable to non-controlling interests.

For the years ended December 31, 2016, 2015 and 2014, there were 31,126, 563,803 and 244,623 anti-dilutive common stock equivalents, respectively.