Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings per Share

Earnings per share

3. Earnings per Share

Historical earnings per share information is not applicable for reporting periods prior to the consummation of the Reorganization Transactions and the IPO because the ownership structure of the Company did not include a common unit of ownership. Net income available for common stockholders is based on the Company’s approximate 28.9% interest in Virtu Financial.

The below table contains a reconciliation of net income before noncontrolling interest to net income available for common stockholders:

	For the Year ended December 31
(in thousands)	2016		2015
Income before income taxes and noncontrolling interest	$	179,591	$	215,929
Provision for income taxes		21,251		18,439
Net income		158,340		197,490
Net income allocable to members of Virtu Financial (for the period January 1, 2015 through April 15, 2015)		—		(83,147)
Noncontrolling interest		(125,360)		(93,456)
Net income available for common stockholders	$	32,980	$	20,887

The calculation of basic and diluted earnings per share is presented below:

	For the Year Ended December 31
(in thousands, except for share or per share data)	2016		2015
Basic earnings per share:
Net income available for common stockholders	$	32,980	$	20,887
Less: Dividends and undistributed earnings allocated to participating securities		(809)		—
Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities		32,171		20,887
Weighted average shares of common stock outstanding:
Class A		38,539,091		34,964,312
Basic Earnings per share	$	0.83	$	0.60

	For the Year Ended December 31
(in thousands, except for share or per share data)	2016		2015
Diluted earnings per share:
Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities	$	32,171	$	20,887
Weighted average shares of common stock outstanding:
Class A
Issued and outstanding		38,539,091		34,964,312
Issuable pursuant to 2015 Management Incentive Plan(1)		—		375,273
		38,539,091		35,339,585
Diluted Earnings per share	$	0.83	$	0.59

(1) The dilutive impact of unexercised stock options excludes from the computation of EPS 743,096 and 0 options for the years ended December 31, 2016 and 2015, respectively, because inclusion of the options would have been anti-dilutive.