Note 2 – Earnings Per Share

Basic earnings or loss per share is computed by dividing net income or loss available to MasTec’s common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income available to MasTec’s common shareholders by the number of fully diluted shares, which includes the effect of dilutive potential issuances of common shares as determined using income from continuing operations, including the potential issuance of common shares upon the exercise, conversion or vesting of outstanding stock options and unvested restricted shares, as calculated under the treasury stock method, as well as shares associated with the Company’s convertible debt securities, which matured and were converted in 2014. If the Company reports a loss, rather than income, from continuing operations, the computation of diluted loss per share excludes dilutive common stock equivalents as their effect would be anti-dilutive. For the year ended December 31, 2015, the Company reported a net loss from continuing operations, which resulted in the exclusion of 563,803 weighted average dilutive common shares from the calculation of diluted net loss per share for the related period.

Except for the shares mentioned above, there were no anti-dilutive common stock equivalents excluded from the calculation of diluted earnings per share for the year ended December 31, 2015. For the year ended December 31, 2014, there were 244,623 weighted average anti-dilutive common stock equivalents excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. For the year ended December 31, 2013, there were no anti-dilutive common stock equivalents.

The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands):



	For the Years Ended December 31,
	2015			2014			2013
Net (loss) income attributable to MasTec:
Net (loss) income, continuing operations - basic^(a)	$	(79,110	)	$	122,375		$	147,492
Interest expense, net of tax, convertible notes	—			181			315
Net (loss) income, continuing operations - diluted	$	(79,110	)	$	122,556		$	147,807
Net loss from discontinued operations - basic and diluted ^(a)	—			(6,452		)	(6,542		)
Net (loss) income attributable to MasTec - diluted	$	(79,110	)	$	116,104		$	141,265
Weighted average shares outstanding:
Weighted average shares outstanding - basic	80,489			79,953			76,923
Dilutive common stock equivalents	—			813			777
Dilutive shares, convertible notes	—			5,430			7,201
Weighted average shares outstanding - diluted	80,489			86,196			84,901


(a)	Calculated as total net (loss) income less amounts attributable to non-controlling interests.

Convertible Notes - Diluted Share Impact

In June 2014, $115 million aggregate principal amount of 4.0% senior convertible notes (the “4.0% Convertible Notes”) matured, at which time the holders elected to convert the notes. Upon conversion, the Company paid $105 million in cash and issued 4.2 million shares of common stock in respect thereof. Additionally, in December 2014, $100 million aggregate principal amount of 4.25% senior convertible notes (the “4.25% Convertible Notes”, and, collectively with the 4.0% Convertible Notes, the “Convertible Notes”) matured and were converted, and, upon conversion, the Company paid $97 million in cash and issued 2.4 million shares of common stock in respect of such notes.

Until their maturity in 2014, dilutive shares associated with the convertible notes issued in 2009, aggregating $13 million in principal amount, were attributable to the underlying principal amounts and were reflected in the calculation of weighted average diluted earnings per share for the corresponding periods by application of the “if-converted” method, whereas dilutive shares associated with the convertible notes issued in 2011 (the "2011 Convertible Notes"), aggregating $202 million in principal amount, were derived from the premium value of such convertible notes in excess of their principal amounts, as calculated using the treasury stock method. These shares were referred to as the “premium shares.” The 4.25% Convertible Notes were convertible at $15.48 per share and the 4.0% Convertible Notes were convertible at $15.76 per share.

For the year ended December 31, 2014, there were 5.0 million equivalent premium shares included in the Company’s dilutive share calculation related to the 2011 Convertible Notes, as calculated based on the conversion shares of approximately 13.0 million related thereto and the average price per share of the Company's common stock from the beginning of the year through their respective dates of maturity. For the year ended December 31, 2013, there were approximately 6.4 million equivalent premium shares included in the Company’s dilutive share calculation related to the 2011 Convertible Notes.