Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings or loss per common share (“EPS”) has been calculated by dividing net income from continuing operations by the weighted average shares of KCG Class A Common Stock outstanding during each respective period. Diluted EPS reflects the potential reduction in EPS using the treasury stock method to reflect the impact of common stock equivalents if stock options, SARs and warrants were exercised and restricted awards were to vest.

The number of such options, warrants and SARs excluded was approximately 28.8 million for the three and nine months ended September 30, 2013. The computation of diluted shares can vary among periods due in part to the change in the average price of KCG Class A Common Stock.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations from continuing operations for the three and nine months ended September 30, 2013 and 2012 (in thousands):

	For the three months ended September 30,
	2013				2012
	Numerator / net income		Denominator / shares		Numerator / net income		Denominator / shares
Income from continuing operations and shares used in basic calculations	$	227,621	114,113		$	9,807	46,411
Effect of dilutive stock based awards			660				—
Income from continuing operations and shares used in diluted calculations	$	227,621	114,773		$	9,807	46,411
Basic earnings per share from continuing operations			$	1.99			$	0.21
Diluted earnings per share from continuing operations			$	1.98			$	0.21

	For the nine months ended September 30,
	2013				2012
	Numerator / net income		Denominator / shares		Numerator / net income		Denominator / shares
Income from continuing operations and shares used in basic calculations	$	138,316	68,632		$	24,556	49,619
Effect of dilutive stock based awards			223				—
Income from continuing operations and shares used in diluted calculations	$	138,316	68,855		$	24,556	49,619
Basic earnings per share from continuing operations			$	2.02			$	0.49
Diluted earnings per share from continuing operations			$	2.01			$	0.49

The number of shares used to calculate EPS for 2012 are GETCO units converted into KCG shares using an exchange ratio as detailed in the Merger Agreement.