Note 11 – Earnings Per Share

Basic earnings per share are computed by dividing net income attributable to common shareholders of Party City Holdco Inc. by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options and warrants, as if they were exercised, and restricted stock units, as if they vested.

A reconciliation between basic and diluted income per share is as follows:


	Three Months Ended June 30, 2018		Three Months Ended June 30, 2017		Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
Net income attributable to common shareholders of Party City Holdco Inc.	$	28,487	$	24,982	$	27,354	$	20,299
Weighted average shares - Basic		96,453,884		119,528,147		96,426,235		119,526,007
Effect of dilutive securities:
Warrants		—		—		—		—
Restricted stock units		—		—		—		—
Stock options		1,234,350		1,415,598		1,243,074		1,377,025

Weighted average shares - Diluted		97,688,233		120,943,745		97,669,309		120,903,032

Net income per share attributable to common shareholders of Party City Holdco Inc. - Basic	$	0.30	$	0.21	$	0.28	$	0.17

Net income per share attributable to common shareholders of Party City Holdco Inc. - Diluted	$	0.29	$	0.21	$	0.28	$	0.17

During the three months ended June 30, 2018 and June 30, 2017, 2,494,428 stock options and 2,417,613 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during the three months ended June 30, 2018 and June 30, 2017, 596,000 warrants and 596,000 warrants, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Further, during the three months ended June 30, 2018 and June 30, 2017, 201,270 restricted stock units and 0 restricted stock units, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive.

During the six months ended June 30, 2018 and June 30, 2017, 2,494,428 stock options and 2,417,613 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during the six months ended June 30, 2018 and June 30, 2017, 596,000 warrants and 596,000 warrants, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Further, during the six months ended June 30, 2018 and June 30, 2017, 201,270 restricted stock units and 0 restricted stock units, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive.