Earnings Per Share

9 Months Ended

Sep. 30, 2018

7. Earnings Per Share

Basic earnings per share is computed using net income attributable to Penske Automotive Group common stockholders and the number of weighted average shares of voting common stock outstanding, including outstanding unvested equity awards which contain rights to non-forfeitable dividends. Diluted earnings per share is computed using net income attributable to Penske Automotive Group common stockholders and the number of weighted average shares of voting common stock outstanding, adjusted for any dilutive effects. A reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2018	2017	2018	2017
Weighted average number of common shares outstanding	84,865,046	85,921,118	85,248,758	85,873,142
Effect of non-participatory equity compensation	40,000	45,000	40,000	45,000
Weighted average number of common shares outstanding, including effect of dilutive securities	84,905,046	85,966,118	85,288,758	85,918,142