Note 2 – Earnings Per Share

Basic earnings or loss per share is computed by dividing net income or loss attributable to MasTec by the weighted average number of common shares outstanding for the period, which excludes non-participating unvested restricted share awards. Diluted earnings per share is computed by dividing net income or loss attributable to MasTec by the weighted average number of fully diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as issued but unvested restricted shares. If the Company reports a loss, rather than income, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive.

As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, the Company adopted ASU 2016-09 effective January 1, 2017 on a prospective basis. ASU 2016-09 changed the recognition of excess tax benefits or tax deficiencies upon the vesting of share-based payment awards from additional paid-in capital, within equity, to income tax benefit or expense, within the statement of operations. As a result, excess tax benefits or deficiencies under ASU 2016-09 are excluded from assumed proceeds under the treasury stock method, whereas under previous guidance, such amounts were included within assumed proceeds. For the year ended December 31, 2017, this resulted in the inclusion of approximately 0.3 million incremental shares in the Company’s total weighted average diluted shares outstanding.

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,
	2017		2016		2015
Net income (loss) attributable to MasTec:
Net income (loss) - basic and diluted^(a)	$	347,213	$	131,263	$	(79,110	)
Weighted average shares outstanding:
Weighted average shares outstanding - basic	80,903		80,372		80,489
Dilutive common stock equivalents	1,422		1,022		—
Weighted average shares outstanding - diluted	82,325		81,394		80,489

Additional information:
Weighted average anti-dilutive common stock equivalents ^(b)	—		31		564


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


(b)	For the year ended December 31, 2016, represents anti-dilutive common stock equivalents as calculated under the treasury stock method, and, for the year ended December 31, 2015, represents anti-dilutive common stock equivalents due to the Company having reported a net loss.