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 September 30, 2018			Three Months Ended September 30, 2017		Nine Months Ended September 30, 2018		Nine Months Ended September 30, 2017
Net (loss) income attributable to common shareholders of Party City Holdco Inc.	$	(2,420	)	$	10,084	$	24,934	$	30,383
Weighted average shares – Basic		96,494,565			119,587,339		96,449,011		119,546,451
Effect of dilutive securities:
Warrants		—			—		—		—
Restricted stock units		—			—		9,004		—
Stock options		—			1,325,510		1,226,275		1,361,528

Weighted average shares – Diluted		96,494,565			120,912,849		97,684,290		120,907,979

Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. – Basic	$	(0.03	)	$	0.08	$	0.26	$	0.25

Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. – Diluted	$	(0.03	)	$	0.08	$	0.26	$	0.25

During the three months ended September 30, 2018 and September 30, 2017, 4,157,559 stock options and 2,370,106 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during the three months ended September 30, 2018 and September 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 September 30, 2018 and September 30, 2017, 191,033 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 nine months ended September 30, 2018 and September 30, 2017, 2,354,244 stock options and 2,370,106 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during both the nine months ended September 30, 2018 and the nine months ended September 30, 2017, 596,000 warrants were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Further, during both the nine months ended September 30, 2018 and the nine months ended September 30, 2017, 0 restricted stock units were excluded from the calculation of diluted earnings per share as they were anti-dilutive.