Earnings (Loss) Per Share

On January 31, 2017, our common stock was reclassified into shares of Class B common stock and, on February 6, 2017, we completed our IPO of Class A common stock. Other than voting rights, the Class B common stock has the same rights as the Class A common stock and therefore both are treated as the same class of stock for purposes of the earnings per share calculation. Laureate computes basic earnings per share (EPS) by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted EPS reflects the potential dilution that would occur if share-based compensation awards, contingently issuable shares, and convertible securities were exercised or converted into common stock. To calculate the diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted stock, restricted stock units, and other share-based compensation arrangements determined using the treasury stock method, and convertible securities using the if-converted method.

The following tables summarize the computations of basic and diluted earnings per share:



For the years ended December 31,	2018			2017			2016
Numerator used in basic and diluted earnings (loss) per common share for continuing operations:
(Loss) income from continuing operations	$	(4,730	)	$	20,838		$	332,740
Net (income) loss attributable to noncontrolling interests	(11		)	804			1,393
(Loss) income from continuing operations attributable to Laureate Education, Inc.	(4,741		)	21,642			334,133

Accretion of redemption value of redeemable noncontrolling interests and equity	(292		)	317			263
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	(559		)	(6,358		)	33
Accretion of Series A Preferred Stock	(61,974		)	(292,450		)	(1,719		)
Gain upon conversion of Series A Preferred Stock	74,110			—			—
Distributed and undistributed earnings to participating securities	—			(1		)	(98		)
Subtotal: accretion of Series A Preferred Stock, net, and other redeemable noncontrolling interests and equity	11,285			(298,492		)	(1,521		)
Net income (loss) from continuing operations available to common stockholders for basic earnings per share	6,544			(276,850		)	332,612
Adjusted for: accretion of Series A Preferred Stock	61,974			—			—
Adjusted for: gain upon conversion of Series A Preferred Stock	(74,110		)	—			—
Net (loss) income from continuing operations available to common stockholders for diluted earnings per share	$	(5,592	)	$	(276,850	)	$	332,612

Numerator used in basic and diluted earnings (loss) per common share for discontinued operations:
Income from discontinued operations, net of tax	$	79,080		$	72,926		$	33,446
Gain on sale of discontinued operations, net of tax	296,580			—			—
(Income) loss attributable to noncontrolling interests	(852		)	(3,103		)	4,268
Allocation of earnings from discontinued operations to participating securities	—			(5		)	(16		)
Net income from discontinued operations for basic and diluted earnings per share	$	374,808		$	69,818		$	37,698

Denominator used in basic and diluted earnings (loss) per common share:
Basic weighted average shares outstanding	212,769			172,409			133,295
Effect of dilutive stock options	—			—			833
Effect of dilutive restricted stock units	—			—			278
Dilutive weighted average shares outstanding	212,769			172,409			134,406

Basic earnings (loss) per share:
Income (loss) from continuing operations	$	0.03		$	(1.60	)	$	2.50
Income from discontinued operations	1.76			0.40			0.28
Basic earnings (loss) per share	$	1.79		$	(1.20	)	$	2.78
Diluted earnings (loss) per share:
(Loss) income from continuing operations	$	(0.03	)	$	(1.60	)	$	2.48
Income from discontinued operations	1.76			0.40			0.28
Diluted earnings (loss) per share	$	1.73		$	(1.20	)	$	2.76

The shares of Class A common stock that were issuable upon completion of the conversion of the Series A Preferred Stock were not included in the calculation of diluted EPS, as the effect would have been antidilutive. In the calculation of diluted EPS for 2018, the conversion of the Series A Preferred Stock, which occurred on April 23, 2018, was assumed to have occurred as of the beginning of the period; accordingly, the effects of the accretion and the gain upon conversion of the Series A Preferred Stock were removed from net income available to common stockholders for diluted earnings per share. The following table summarizes the number of stock options, shares of restricted stock and restricted stock units (RSUs) that were excluded from the diluted EPS calculations because the effect would have been antidilutive:



For the years ended December 31,	2018	2017	2016
Stock options	9,387	12,497	5,773
Restricted stock and RSUs	1,300	986	181