Earnings (Loss) per Common Share

6 Months Ended

Jun. 30, 2017

Note 4. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share reflects the potential dilution that could occur if securities, or other contracts to issue common stock, were exercised. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with Accounting Standards Codification ("ASC") Topic 260, “Earnings per Share.” Dilutive securities include options granted pursuant to the Company’s stock option plans and outstanding restricted stock units and performance share units granted to employees and non-employee directors (see Note 12).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	31,443	$	34,105	$	57,132	$	72,495
Weighted-average common shares outstanding—basic	94,213		94,029		94,142		93,990
Basic earnings per common share	$	0.33	$	0.36	$	0.61	$	0.77
Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	31,443	$	34,105	$	57,132	$	72,495
Weighted-average common shares outstanding—basic	94,213		94,029		94,142		93,990
Options and restricted stock	1,984		1,864		1,931		1,668
Weighted-average common shares outstanding—diluted	96,197		95,893		96,073		95,658
Dilutive earnings per common share	$	0.33	$	0.36	$	0.59	$	0.76

For the three months ended June 30, 2017 and 2016, securities outstanding totaling approximately 131,000 shares and 309,000 shares, respectively, comprised of stock options, have been excluded from the calculation of earnings per common share—diluted as their effect would be antidilutive. For the six months ended June 30, 2017 and 2016, securities outstanding totaling approximately 141,000 shares and 361,000 shares, respectively, comprised of stock options and restricted stock units, have been excluded from the calculation of earnings per common share—diluted as their effect would be antidilutive.