Net Income Per Share/Unit (Tables)

12 Months Ended

Dec. 31, 2018

Calculation of Basic and Diluted Net Income 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.

Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share/Unit

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.