Earnings Per Share

12 Months Ended

Dec. 31, 2022

16. Earnings Per Share

Basic earnings per share ("EPS") is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, after giving effect to the minimum number of shares issuable upon settlement of the prepaid stock purchase contract component of the Units.

Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. Diluted EPS reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. Potentially dilutive common stock equivalents include unvested restricted stock, restricted stock units, the Warrant, the Notes, and the prepaid stock purchase contract component of the Units. Refer to Notes 4, 8, and 10 for more information on the Warrant, Notes, and Units, respectively.

The following table summarizes the computation of basic and diluted earnings (loss) per share amounts presented in the consolidated statements of operations.


	Years Ended December 31,
(in thousands, except for per share amounts)	2022		2021		2020
Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders	$	(238,427)	$	(99,290)	$	82,019

Weighted average common shares outstanding	186,574		184,975		183,498
Weighted average minimum shares issuable under purchase contracts	3,889		—		—
Weighted average shares outstanding - basic	190,463		184,975		183,498
Effect of dilutive securities
Restricted stock and restricted stock units	—		—		137
Warrants	—		—		751


Weighted average shares outstanding - diluted	190,463		184,975		184,386

Net income (loss) per share attributable to Brookdale Senior Living Inc. common stockholders - basic	$	(1.25)	$	(0.54)	$	0.45
Net income (loss) per share attributable to Brookdale Senior Living Inc. common stockholders - diluted	$	(1.25)	$	(0.54)	$	0.44

For the purposes of computing diluted EPS, weighted average shares outstanding do not include potentially dilutive securities that are anti-dilutive under the treasury stock method or if-converted method, and performance-based equity awards are included based on the attainment of the applicable performance metrics as of the end of the reporting period. The Company has the following potentially outstanding shares of common stock, which were excluded from the computation of diluted net income (loss) per share attributable to common stockholders in periods in which including them would have been antidilutive.


	As of December 31,
(in millions)	2022(1)	2021(1)	2020


Restricted stock and restricted stock units	5.4	5.0	8.4
Warrants	16.3	16.3	—
Incremental shares issuable under purchase contracts	6.5	—	—
Convertible senior notes	38.3	38.3	—
Total	66.5	59.6	8.4

(1) As a result of the net loss reported for the period, the potentially dilutive common stock equivalents were antidilutive for the period and as such were not included in the computation of diluted weighted average shares outstanding.

As of December 31, 2022, the maximum number of shares issuable upon conversion of convertible senior notes is 38.3 million (after giving effect to additional shares that would be issuable upon conversion in connection with the occurrence of certain corporate or other events).

As of December 31, 2022, the maximum number of shares issuable upon settlement of the Units' prepaid stock purchase contracts is 43.7 million, of which 37.2 million are included in the computation of weighted average basic shares outstanding for 2022.