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, or 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 contingently issuable shares 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 three months ended September 30,	2018			2017
Numerator used in basic and diluted earnings (loss) per common share for continuing operations:
Loss from continuing operations	$	(43,792	)	$	(67,181	)
Net loss attributable to noncontrolling interests	2,037			3,943
Loss from continuing operations attributable to Laureate Education, Inc.	(41,755		)	(63,238		)

Accretion of redemption value of redeemable noncontrolling interests and equity	324			(105		)
Accretion of Series A Preferred Stock	—			(83,955		)
Subtotal: accretion of Series A Preferred Stock and other redeemable noncontrolling interests and equity	324			(84,060		)
Net loss from continuing operations available to common stockholders for basic and diluted earnings per share	$	(41,431	)	$	(147,298	)

Numerator used in basic and diluted earnings (loss) per common share for discontinued operations:
Loss from discontinued operations, net of tax	$	(34,466	)	$	(36,309	)
Loss on sales of discontinued operations, net of tax	(18,426		)	—
(Income) loss attributable to noncontrolling interests	(142		)	1,588
Net loss from discontinued operations for basic and diluted earnings per share	$	(53,034	)	$	(34,721	)

Denominator used in basic and diluted earnings (loss) per common share:
Basic and diluted weighted average shares outstanding	224,037			178,871

Basic and diluted loss per share:
Loss from continuing operations	$	(0.18	)	$	(0.82	)
Loss from discontinued operations	(0.24		)	(0.20		)
Basic and diluted loss per share	$	(0.42	)	$	(1.02	)



For the nine months ended September 30,	2018			2017
Numerator used in basic and diluted earnings (loss) per common share for continuing operations:
Loss from continuing operations	$	(35,549	)	$	(150,792	)
Net loss attributable to noncontrolling interests	892			2,652
Loss from continuing operations attributable to Laureate Education, Inc.	(34,657		)	(148,140		)

Accretion of redemption value of redeemable noncontrolling interests and equity	1,130			(635		)
Adjusted for: accretion related to noncontrolling interests and equity redeemable at fair value	(559		)	(6,357		)
Accretion of Series A Preferred Stock	(61,974		)	(185,149		)
Gain upon conversion of Series A Preferred Stock	74,110			—
Subtotal: accretion of Series A Preferred Stock, net and other redeemable noncontrolling interests and equity	12,707			(192,141		)
Net income (loss) available to common stockholders for basic earnings per share	(21,950		)	(340,281		)
Adjusted for: accretion of Series A Preferred Stock	61,974			—
Adjusted for: gain upon conversion of Series A Preferred Stock	(74,110		)	—
Net loss from continuing operations available to common stockholders for diluted earnings per share	$	(34,086	)	$	(340,281	)

Numerator used in basic and diluted earnings (loss) per common share for discontinued operations:
(Loss) income from discontinued operations, net of tax	$	22,459		$	44,047
Gain on sale of discontinued operations, net of tax	311,904			—
Income attributable to noncontrolling interests	(1,207		)	(287		)
Net income from discontinued operations for basic and diluted earnings per share	$	333,156		$	43,760

Denominator used in basic and diluted earnings (loss) per common share:
Basic and diluted weighted average shares outstanding	209,129			167,261

Basic earnings (loss) per share:
Income (loss) from continuing operations	$	(0.10	)	$	(2.03	)
Income from discontinued operations	1.59			0.26
Basic earnings (loss) per share	$	1.49		$	(1.77	)
Diluted earnings (loss) per share:
Loss from continuing operations	$	(0.16	)	$	(2.03	)
Income from discontinued operations	1.59			0.26
Diluted earnings (loss) per share	$	1.43		$	(1.77	)

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 three months ended September 30,		For the nine months ended September 30,
	2018	2017	2018	2017
Stock options	9,328	13,443	9,628	12,957
Restricted stock and RSUs	931	843	1,034	730