The Company is required to apply the two-class method to compute both basic and diluted net income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders.

The following table presents information necessary to calculate net income per share for the periods presented, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive:

	Three Months Ended June 30,
(In thousands, except per share data)	2019			2018
NET INCOME PER SHARE—BASIC:
Net (loss) income attributable to ADS	$	(226,356	)	$	32,280
Adjustments for:
Dividends to redeemable convertible preferred stockholders		(6,841	)		(497	)
Dividends paid to unvested restricted stockholders		(328	)		(15	)
Net (loss) income available to common stockholders and participating securities		(233,525	)		31,768
Undistributed income allocated to participating securities		—			(2,712	)
Net (loss) income available to common stockholders – Basic	$	(233,525	)	$	29,056
Weighted average number of common shares outstanding – Basic		57,576			56,594
Net (loss) income per common share – Basic	$	(4.06	)	$	0.51
NET INCOME PER SHARE—DILUTED:
Net (loss) income available to common stockholders – Diluted	$	(233,525	)	$	29,056
Weighted average number of common shares outstanding – Basic		57,576			56,594
Assumed exercise of stock options		—			564
Weighted average number of common shares outstanding – Diluted		57,576			57,158
Net (loss) income per common share – Diluted	$	(4.06	)	$	0.51
Potentially dilutive securities excluded as anti-dilutive		10,806			6,166

Stockholders’ Equity - The Company did not repurchase any shares of common stock during the three months ended June 30, 2019 and 2018. The Company’s Board of Directors’ in February 2017 authorized the Company to repurchase up to $50 million of ADS common stock in accordance with applicable securities laws. As of June 30, 2019, approximately $42.1 million of common stock may be repurchased under the authorization. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or terminated at any time at the Company’s discretion.

Special Dividend and the Employees Stock Ownership Plan (“ESOP”) - During the three months ended June 30, 2019, the Board of Directors approved a special cash dividend of $1.00 per share and a quarterly dividend of $0.09. The special and quarterly dividend were paid to all stockholders on June 14, 2019 to stockholders of record at the close of business on June 3, 2019. The total dividend payment was $81.6 million. The dividends received by the unallocated redeemable convertible preferred stock held in the ESOP trust was used to pay $12.0 million of the ESOP loan back to the Company resulting in approximately 11.6 million shares of the Company’s redeemable convertible preferred stock being allocated to ESOP participants. The Company recognized $246.8 million in stock-based compensation expense based on the fair value on the date the Board of Directors approved the special dividend. The Board of Director’s approval committed the ESOP to use those proceeds to pay down the ESOP loan. The special dividend compensation expense was recognized in Cost of goods sold - ESOP special dividend compensation and Selling, general and administrative expenses - ESOP special dividend compensation on the Company’s Consolidated Statement of Operations. The

Company’s ESOP is further described in “Note16. Employee Benefit Plans” to the Company’s audited financial statements included in the Fiscal 2019 Form 10-K.