3. Basic and Diluted Net Income (Loss) Per Share

We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to DISH Network” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our 3 3/8% Convertible Notes due 2026 issued August 8, 2016 (the “Convertible Notes due 2026”) and our 2 3/8% Convertible Notes due 2024 issued March 17, 2017 (the “Convertible Notes due 2024,” and collectively with the Convertible Notes due 2026, the “Convertible Notes”) were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of our Class A common stock. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of our Class A common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later).

The following table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation.


	For the Years Ended December 31,
	2018		2017		2016
		(In thousands, except per share amounts)
Net income (loss)	$	1,655,491	$	2,165,407	$	1,550,785
Less: Net income (loss) attributable to noncontrolling interests, net of tax		80,400		66,718		52,846
Net income (loss) attributable to DISH Network - Basic		1,575,091		2,098,689		1,497,939
Interest on dilutive Convertible Notes, net of tax (1)		—		30,028		27,515
Net income (loss) attributable to DISH Network - Diluted	$	1,575,091	$	2,128,717	$	1,525,454

Weighted-average common shares outstanding - Class A and B common stock:
Basic		467,350		466,021		464,807
Dilutive impact of Convertible Notes		58,192		55,692		18,361
Dilutive impact of stock awards outstanding		290		883		994
Diluted		525,832		522,596		484,162

Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to DISH Network	$	3.37	$	4.50	$	3.22
Diluted net income (loss) per share attributable to DISH Network	$	3.00	$	4.07	$	3.15

(1)

For the year ended December 31, 2018, materially all of our interest expense was capitalized. See Note 2 for further information.

Certain stock awards to acquire our Class A common stock are not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive. In addition, vesting of performance based options and rights to acquire shares of our Class A common stock granted pursuant to our performance based stock incentive plans (“Restricted Performance Units”) are both contingent upon meeting certain goals, some of which are not yet probable of being achieved. Furthermore, the warrants that we issued to certain option counterparties in connection with the Convertible Notes due 2026 are only exercisable at their expiration if the market price per share of our Class A common stock is greater than the strike price of the warrants, which is approximately $86.08 per share, subject to adjustments. As a consequence, the following are not included in the diluted EPS calculation.


	As of December 31,
	2018	2017	2016
	(In thousands)
Anti-dilutive stock awards	4,377	1,694	1,870
Performance based options (1)	8,970	5,491	4,312
Restricted Performance Units/Awards	1,726	2,436	1,336
Common stock warrants	46,029	46,029	46,029
Total	61,102	55,650	53,547

(1)

The increase in performance based options as of December 31, 2018 primarily resulted from the issuance of stock option awards as of October 1, 2018 under a long-term, performance-based stock incentive plan adopted on August 17, 2018 (the “2019 LTIP”).