Earnings (Loss) Per Share

As discussed in Note 1, Description of Business, 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/arrangements or contingently issuable shares 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, and other share-based compensation arrangements determined using the treasury stock method.

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



For the three months ended September 30,	2017			2016
Numerator used in basic and diluted (loss) earnings per common share:
(Loss) income from continuing operations attributable to Laureate Education, Inc.	$	(97,959	)	$	86,317

Accretion of redemption value of redeemable noncontrolling interests and equity	(105		)	1,426
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	—			756
Accretion of Series A convertible redeemable preferred stock	(83,955		)	—
Distributed and undistributed earnings to participating securities	—			(22		)
Accretion of Series A convertible redeemable preferred stock and other redeemable noncontrolling interests and equity	(84,060		)	2,160
Net (loss) income available to common stockholders	$	(182,019	)	$	88,477

Denominator used in basic and diluted (loss) earnings per common share:
Basic weighted average shares outstanding	178,871			133,303
Effect of dilutive stock options	—			828
Effect of dilutive restricted stock units	—			98
Dilutive weighted average shares outstanding	178,871			134,229

Basic and diluted (loss) earnings per share:
Basic (loss) earnings per share	$	(1.02	)	$	0.66
Diluted (loss) earnings per share	$	(1.02	)	$	0.66



For the nine months ended September 30,	2017			2016
Numerator used in basic and diluted (loss) earnings per common share:
(Loss) income from continuing operations attributable to Laureate Education, Inc.	$	(104,380	)	$	330,539

Accretion of redemption value of redeemable noncontrolling interests and equity	(635		)	3,538
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	(6,357		)	(201		)
Accretion of redemption value of Series A Preferred Stock	(185,149		)	—
Distributed and undistributed earnings to participating securities	—			(104		)
Accretion of Series A convertible redeemable preferred stock and other redeemable noncontrolling interests and equity	(192,141		)	3,233
Net (loss) income available to common stockholders	$	(296,521	)	$	333,772

Denominator used in basic and diluted (loss) earnings per common share:
Basic weighted average shares outstanding	167,261			133,291
Effect of dilutive stock options	—			858
Effect of dilutive restricted stock units	—			68
Dilutive weighted average shares outstanding	167,261			134,217

Basic and diluted (loss) earnings per share:
Basic (loss) earnings per share	$	(1.77	)	$	2.50
Diluted (loss) earnings per share	$	(1.77	)	$	2.49

The shares of Class A common stock that would be issued upon completion of the conversion of the Series A Preferred Stock are not included in the calculation of diluted EPS as the effect would have been antidilutive. The following table summarizes the number of stock options and shares of restricted stock that were excluded from the diluted EPS calculations because the effect would have been antidilutive:



	For the three months ended September 30,		For the nine months ended September 30,
	2017	2016	2017	2016
Stock options	13,443	5,414	12,957	2,931
Restricted stock	843	168	730	131