Earnings per Share

12 Months Ended

Dec. 31, 2016

Note 3. Earnings per Share

For the period of January 1, 2014 through December 11, 2014, prior to the Transactions, our equity reflected 100% ownership by Burger King Worldwide, Inc. shareholders. For 2016, 2015 and the period from December 12, 2014 through December 31, 2014, our equity reflected a controlling interest through Company common shares. Additionally, beginning on December 12, 2014, an economic interest in Partnership common equity is held by the holders of the Class B exchangeable limited partnership units of Partnership (the “Partnership exchangeable units”) reflected as a noncontrolling interest in our equity. See Note 13, Shareholders’ Equity.

Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for Burger King Worldwide, Inc. shareholders for the period of January 1, 2014 through December 11, 2014, and the Company’s shareholders for the period from December 12, 2014 through December 31, 2014, 2015 and 2016. We apply the treasury stock method to determine the dilutive weighted average common shares represented by Partnership exchangeable units and outstanding stock options, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of noncontrolling interests.

The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts):


	2016		2015		2014
Numerator:
Net income (loss) attributable to common shareholders - basic	$	345.6	$	103.9	$	(398.8	)
Add: Net income (loss) attributable to noncontrolling interests		336.8		133.2		(430.7	)

Net income (loss) available to common shareholders and noncontrolling interests - diluted	$	682.4	$	237.1	$	(829.5	)


Denominator:
Weighted average common shares - basic		232.9		203.5		343.7
Exchange of noncontrolling interests for common shares (Note 13)		227.8		263.5		14.5
Effect of other dilutive securities (a)		9.3		9.0		—

Weighted average common shares - diluted		470.0		476.0		358.2


Basic earnings (loss) per share	$	1.48	$	0.51	$	(1.16	)
Diluted earnings (loss) per share	$	1.45	$	0.50	$	(2.32	)
Anti-dilutive securities outstanding		5.7		5.0		21.3

(a)

There is no effect of other dilutive securities for the year ended December 31, 2014 because a net loss was reported during this period causing any potentially dilutive securities to be anti-dilutive. Therefore, 21.3 million shares of potentially dilutive securities were excluded in the calculation of diluted earnings (loss) per share since their impact would have been anti-dilutive.