Earnings Per Share

3 Months Ended

Mar. 31, 2017

Basic earnings or loss per common share (“EPS”) has been calculated by dividing net income or loss 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 RSUs, options, Warrants and SARs excluded from the EPS calculation was approximately 3.8 million and 23.8 million for the three months ended March 31, 2017 and 2016, respectively. Such RSUs, options, Warrants and SARs were excluded from the EPS calculation as their inclusion would have an anti-dilutive impact on the EPS calculation. The computation of diluted shares can vary among periods due in part to the change in the average price of the KCG Class A Common Stock. See Footnote 2 "Significant Accounting Policies" for more information related to a recently adopted ASU affecting the impact of excess tax benefits in calculating diluted EPS.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2017 and 2016 (in thousands, except per share amounts):



	For the three months ended March 31,
	2017				2016
	Numerator / net income		Denominator / shares		Numerator / net income		Denominator / shares
Income and shares used in basic calculations	$	3,212	66,306		$	37,165	88,458
Effect of dilutive stock based awards
Restricted awards and warrants			800				992
Stock options and SARs			536				155
Income and shares used in diluted calculations	$	3,212	67,642		$	37,165	89,605
Basic earnings per common share			$	0.05			$	0.42
Diluted earnings per common share			$	0.05			$	0.41