Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net income attributable to Kraton by the weighted-average number of shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Kraton by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, were exercised, settled or converted into common stock and were dilutive. The diluted weighted-average number of shares used in our diluted EPS calculation is determined using the treasury stock method.

The calculations of basic and diluted EPS are as follows:




	Three Months Ended September 30, 2017								Three Months Ended September 30, 2016
	Net Loss Attributable to Kraton			Weighted Average Shares Outstanding		Loss Per Share			Net Income Attributable to Kraton			Weighted Average Shares Outstanding		Earnings Per Share
	(In thousands, except per share data)
Basic:
As reported	$	(4,033	)	31,223					$	15,560		30,874
Amounts allocated to unvested restricted shares	77			(598	)				(329		)	(653	)
Amounts available to common stockholders	(3,956		)	30,625		$	(0.13	)	15,231			30,221		$	0.50
Diluted:
Amounts allocated to unvested restricted shares	(77		)	598					329			653
Non participating share units	—			—					—			205
Stock options added under the treasury stock method	—			—					—			357
Amounts reallocated to unvested restricted shares	77			(598	)				(323		)	(653	)
Amounts available to stockholders and assumed conversions	$	(3,956	)	30,625		$	(0.13	)	$	15,237		30,783		$	0.49



	Nine Months Ended September 30, 2017							Nine Months Ended September 30, 2016
	Net Income Attributable to Kraton			Weighted Average Shares Outstanding		Earnings Per Share		Net Income Attributable to Kraton			Weighted Average Shares Outstanding		Earnings Per Share
	(In thousands, except per share data)
Basic:
As reported	$	27,941		31,151				$	111,048		30,809
Amounts allocated to unvested restricted shares	(541		)	(603	)			(2,422		)	(672	)
Amounts available to common stockholders	27,400			30,548		$	0.90	108,626			30,137		$	3.60
Diluted:
Amounts allocated to unvested restricted shares	541			603				2,422			672
Non participating share units	—			175				—			208
Stock options added under the treasury stock method	—			283				—			212
Amounts reallocated to unvested restricted shares	(533		)	(603	)			(2,390		)	(672	)
Amounts available to stockholders and assumed conversions	$	27,408		31,006		$	0.88	$	108,658		30,557		$	3.56