Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings per share is calculated based on income from continuing and discontinued operations less any income attributable to noncontrolling interests. Income attributable to noncontrolling interests represents third-party limited partner unitholders' interests in the earnings of our consolidated subsidiary, Rose Rock. Rose Rock allocates net income to its limited partners based on the distributions pertaining to the current period's available cash as defined by Rose Rock's partnership agreement. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to Rose Rock's general partner, limited partners and participating securities in accordance with the contractual terms of Rose Rock's partnership agreement and as further prescribed under the two-class method. Incentive distribution rights do not participate in undistributed earnings.

Basic earnings per share is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share includes the dilutive effect of unvested equity compensation awards.

The following summarizes the calculation of basic earnings per share for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):



	Three Months Ended March 31, 2016									Three Months Ended March 31, 2015
	Continuing Operations			Discontinued Operations			Net			Continuing Operations		Discontinued Operations		Net
Income (loss)	$	(6,246	)	$	(2	)	$	(6,248	)	$	5,776	$	—	$	5,776
less: Income attributable to noncontrolling interests	9,020			—			9,020			4,310		—		4,310
Income (loss) attributable to SemGroup	$	(15,266	)	$	(2	)	$	(15,268	)	$	1,466	$	—	$	1,466
Weighted average common stock outstanding	43,870			43,870			43,870			43,717		43,717		43,717
Basic earnings (loss) per share	$	(0.35	)	$	—		$	(0.35	)	$	0.03	$	—	$	0.03

The following summarizes the calculation of diluted earnings per share for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):



	Three Months Ended March 31, 2016									Three Months Ended March 31, 2015
	Continuing Operations			Discontinued Operations			Net			Continuing Operations		Discontinued Operations		Net
Income (loss)	$	(6,246	)	$	(2	)	$	(6,248	)	$	5,776	$	—	$	5,776
less: Income attributable to noncontrolling interests	9,020			—			9,020			4,310		—		4,310
Income (loss) attributable to SemGroup	$	(15,266	)	$	(2	)	$	(15,268	)	$	1,466	$	—	$	1,466
Weighted average common stock outstanding	43,870			43,870			43,870			43,717		43,717		43,717
Effect of dilutive securities	—			—			—			223		223		223
Diluted weighted average common stock outstanding	43,870			43,870			43,870			43,940		43,940		43,940
Diluted earnings (loss) per share	$	(0.35	)	$	—		$	(0.35	)	$	0.03	$	—	$	0.03

For the three months March 31, 2016, we experienced a net loss, as such the unvested equity compensation awards would have been antidilutive and, therefore, were not included in the computation of diluted earnings per share.