9. Earnings Per Share

Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects, in periods in which they have a dilutive effect, the effect of restricted stock-based awards, common shares issuable upon exercise of stock options and warrants and shares underlying convertible notes potentially issuable upon conversion. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options outstanding were exercised and all convertible notes have been converted into common stock.

For the Current Quarter, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, approximately 0.4 million shares were anti-dilutive, as compared to approximately 0.1 million shares that were anti-dilutive for the Prior Year Quarter.

For the Current Quarter, 0.6 million shares of the performance related restricted stock-based awards issued to the Company’s named executive officers were anti-dilutive as compared to none of the performance related restricted stock-based awards issued to the Company’s named executive officers were anti-dilutive in the Prior Year Quarter.

For the Current Quarter, Current Six Months, Prior Year Quarter and Prior Year Six Months, warrants issued in connection with the Company’s 1.50% Convertible Notes financing were anti-dilutive and therefore were not included in this calculation.

A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2017		2016		2017		2016
Basic		57,082		49,035		57,026		48,772
Effect of exercise of stock options		1		3		3		2
Effect of assumed vesting of restricted stock		485		1,637		539		1,727
Diluted		57,568		50,675		57,568		50,501

In accordance with ASC 480, the Company considers its redeemable non-controlling interest in its computation of earnings per share. For the Current Quarter and Current Six Months, adjustments to the Company’s redeemable non-controlling interest had an impact on the Company’s earnings per share calculation as follows:

	Three Months Ended			Six Months Ended
	June 30, 2017			June 30, 2017
Net loss from continuing operations attributable to Iconix Brand Group, Inc.	$	(13,852	)	$	(9,136	)
Accretion of redeemable non-controlling interest		(978	)		(2,013	)
Net loss attributable to Iconix Brand Group, Inc. after accretion of redeemable non-controlling interest		(14,830	)		(11,149	)

Net income from discontinued operations attributable to Iconix Brand Group, Inc.		57,493			48,498

Net income attributable to Iconix Brand Group, Inc.	$	42,663		$	37,349

Earnings (loss) per share - basic:
Continuing operations	$	(0.26	)	$	(0.20	)
Discontinued operations	$	1.01		$	0.85
Earnings per share - basic	$	0.75		$	0.65

Earnings (loss) per share - diluted:
Continuing operations	$	(0.26	)	$	(0.19	)
Discontinued operations	$	1.00		$	0.84
Earnings per share - diluted	$	0.74		$	0.65
Weighted average number of common shares outstanding:
Basic		57,082			57,026
Diluted		57,568			57,568

For the Prior Year Quarter and Prior Year Six Months, adjustments to the Company’s redeemable non-controlling interest had no impact on the Company’s earnings per share calculation.

See Note 7 for discussion of hedges related to our convertible notes.