Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the reportable period. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the effect of all potential common shares unless they are anti-dilutive. For purpose of this calculation, potentially dilutive securities are determined by applying the treasury stock method to the assumed exercise of in-the-money stock options and the assumed vesting of outstanding restricted stock awards (RSAs) and release of deferred restricted stock units (RSUs). Potentially dilutive securities related to convertible senior notes are determined using the if-converted method.

The Company's vested deferred RSUs have non-forfeitable rights to dividends prior to release and are considered participating securities. Accordingly, they are included in the computation of basic and diluted loss per share, pursuant to the two-class method. Under the two-class method, distributed and undistributed earnings allocated to participating securities are excluded from net earnings (loss) attributable to common stockholders for purposes of calculating basic and diluted earnings (loss) per share. However, net losses are not allocated to participating securities since they are not contractually obligated to share in the losses of the Company.

Potentially dilutive securities excluded from the calculation of diluted earnings (loss) per share because their effect would have been anti-dilutive were 8,091,295and 8,488,756, respectively, for the three and six months ended June 30, 2017 and 8,006,242 and 8,050,844, respectively, for the three and six months ended June 30, 2016.

The computations for Class A basic and diluted loss per share are as follows (in thousands except share data):



	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Numerator for basic and diluted loss per share:
Net earnings (loss) attributable to Pattern Energy	$	14,220		$	(3,223	)	$	19,873		$	(26,893	)
Less: earnings allocated to participating securities	(26		)	(13		)	(48		)	(22		)
Net earnings (loss) attributable to common stockholders	$	14,194		$	(3,236	)	$	19,825		$	(26,915	)

Denominator for earnings (loss) per share:
Weighted average number of shares:
Class A common stock - basic	87,065,591			74,443,901			87,064,110			74,440,950
Stock options	7,488			—			—			—
Restricted stock awards	144,302			—			185,366			—
Restricted stock units	—			—			7,654			—
Class A common stock - diluted	87,217,381			74,443,901			87,257,130			74,440,950

Earnings (loss) per share:
Class A common stock:
Basic and diluted	$	0.16		$	(0.04	)	$	0.23		$	(0.36	)

Dividends declared per Class A common share	$	0.42		$	0.39		$	0.83		$	0.77