Earnings (Loss) Per Common Share

Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows for the three and six months ended June 30, 2016 and 2015 (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015

Numerator for earnings (loss) per share:
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	57,289		$	16,406		$	(165,591	)	$	397,165
Allocation of earnings to participating securities (1)	(772		)	(274		)	—			(7,069		)
Net income (loss) attributable to Leucadia National Corporation common shareholders for basic earnings (loss) per share	56,517			16,132			(165,591		)	390,096
Adjustment to allocation of earnings to participating securities related to diluted shares (1)	(9		)	(19		)	—			32
Mandatorily redeemable convertible preferred share dividends	—			—			—			2,031
Net income (loss) attributable to Leucadia National Corporation common shareholders for diluted earnings (loss) per share	$	56,508		$	16,113		$	(165,591	)	$	392,159

Denominator for earnings (loss) per share:
Denominator for basic earnings (loss) per share – weighted average shares	372,556			373,654			372,448			373,611
Stock options	—			8			—			10
Warrants	—			—			—			—
Mandatorily redeemable convertible preferred shares	—			—			—			4,162
3.875% Convertible Senior Debentures	—			—			—			—
Denominator for diluted earnings (loss) per share	372,556			373,662			372,448			377,783

(1)

Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 5,105,700 and 6,516,400 for the three months ended June 30, 2016 and 2015, respectively, and 4,784,200 and 6,804,200 for the six months ended June 30, 2016 and 2015, respectively. Dividends declared on participating securities were $0.3 million and $0.4 million during the three months ended June 30, 2016 and 2015, respectively, and $0.6 million and $0.8 million during six months ended June 30, 2016 and 2015, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Options to purchase 661,300 and 1,006,500 weighted-average shares of common stock were outstanding during the three months ended June 30, 2016 and 2015, respectively, and 661,300 and 1,158,800 weighted-average shares of common stock were outstanding during the six months ended June 30, 2016 and 2015, respectively, but were not included in the computation of diluted per share amounts as the effect was antidilutive.

In the table above, the denominator for diluted earnings (loss) per share does not include weighted-average common shares of 4,000,000 during the three months ended June 30, 2015 and 1,714,300 and 4,000,000, respectively, during the six months ended June 30, 2016 and 2015, related to outstanding warrants to purchase common shares at $33.33 per share, as the effect was antidilutive. The warrants expired in the first quarter of 2016.

For the three and six months ended June 30, 2016 and 2015, shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price.