Net Income Per Share/Unit

The following table sets forth the calculation of basic and diluted net income per share/unit:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(in thousands, except per share/unit data)
Net income per share/unit:
Numerator—basic and diluted:
Net income attributable to Switch, Inc.—basic and diluted	$	821	$	14,953	$	1,492	$	35,281
Denominator—basic:
Weighted average shares/units outstanding—basic⁽¹⁾	42,358		200,644		39,197		200,247
Net income per share/unit—basic	$	0.02	$	0.07	$	0.04	$	0.18
Denominator—diluted:
Weighted average shares/units outstanding—basic⁽¹⁾	42,358		200,644		39,197		200,247
Weighted average effect of dilutive securities:
Options	87		124		89		127
Unvested incentive unit awards	—		6,874		—		6,231
RSUs	1		—		1		—
DEUs	5		—		3		—
RSAs	12		—		6		—
Weighted average shares/units outstanding—diluted⁽¹⁾	42,463		207,642		39,296		206,605
Net income per share/unit—diluted	$	0.02	$	0.07	$	0.04	$	0.17

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(1)	Amounts for the three and six months ended June 30, 2018 represent shares of Class A common stock. Amounts for the three and six months ended June 30, 2017 represent common units.

Shares of Class B common stock and Class C common stock do not share in the earnings or losses of Switch, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted net income per share for each of Class B common stock and Class C common stock under the two-class method has not been presented.

The following table presents potentially dilutive securities excluded from the computation of diluted net income per share/unit for the periods presented because their effect would have been anti-dilutive. There were no anti-dilutive securities for the three and six months ended June 30, 2017.



	Three Months Ended June 30,	Six Months Ended June 30,
	2018	2018
	(in thousands)
Stock options⁽¹⁾	5,602	5,602
RSUs⁽¹⁾	2,118	2,118
Shares of Class B and Class C common stock⁽²⁾	203,145	203,145

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(1)	Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted net income per share.


(2)	Shares of Class B common stock and Class C common stock at the end of the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method.