Net Income (Loss) Per Share/Unit

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



	Years Ended December 31,
	2018		2017			2016
	(in thousands, except per share/unit data)
Net income (loss) per share/unit:
Numerator—basic and diluted:
Net income (loss) attributable to Switch, Inc.—basic and diluted	$	4,052	$	(15,208	)	$	31,368
Denominator—basic:
Weighted average shares/units outstanding—basic⁽¹⁾	45,682		8,074			199,047
Net income (loss) per share/unit—basic	$	0.09	$	(1.88	)	$	0.16
Denominator—diluted:
Weighted average shares/units outstanding—basic⁽¹⁾	45,682		8,074			199,047
Weighted average effect of dilutive securities:
Unit options	50		—			230
Unvested Incentive Units	—		—			4,184
RSUs	6		—			—
DEUs	8		—			—
RSAs	7		—			—
Weighted average shares/units outstanding—diluted⁽¹⁾	45,753		8,074			203,461
Net income (loss) per share/unit—diluted	$	0.09	$	(1.88	)	$	0.15

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(1)	Amounts for the years ended December 31, 2018 and 2017 represent shares of Class A common stock. Amounts for the year ended December 31, 2016 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 calculations of basic and diluted net income (loss) per share for each of Class B common stock and Class C common stock under the two-class method have not been presented.

The following table presents potentially dilutive securities excluded from the computation of diluted net income (loss) per share/unit for the periods presented because their effect would have been anti-dilutive.



	Years Ended December 31,
	2018	2017	2016
	(in thousands)
Weighted average unvested Incentive Units	—	—	533
Stock options⁽¹⁾	7,352	5,725	—
RSUs⁽¹⁾	2,228	31	—
Shares of Class B and Class C common stock⁽²⁾	191,426	216,569	—

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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 (loss) 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.