Net Income Per Share

8 Months Ended

Aug. 31, 2015

Note 14. Net Income Per Share

Basic net income per share is computed by dividing net income from the IPO completion date of June 24, 2015 to the three and eight month periods ended August 31, 2015 attributable to Class A shareholders by the weighted average number of Class A shares outstanding for the applicable periods. Diluted net income per share is computed using basic weighted average Class A shares outstanding plus, if dilutive, any potentially dilutive securities outstanding during the period using the treasury-stock-type method. Pursuant to the Exchange Agreement, among the Partnership, the General Partner, OpCo, a wholly owned subsidiary of SunPower and a wholly owned subsidiary of First Solar, the Sponsors can tender OpCo common units and an equal number of such Sponsor’s Class B shares for redemption, and the Partnership has the right to directly purchase the tendered units for, subject to the approval of its conflicts committee, cash or Class A shares. If Class B shares were converted into Class A shares, the net income attributable to Class A shares would proportionately increase, resulting in no change to net income per share for the period from the IPO closing date to the quarter ended August 31, 2015. In addition, there were no potentially dilutive securities (including any stock options, restricted stock and restricted stock units) for the three and eight months ended August 31, 2015, respectively. Accordingly, basic and diluted net income per share were the same for each of the three and eight months ended August 31, 2015.

	Three Months Ended		Eight Months Ended
	August 31,		August 31,
(in thousands, except per share amounts)	2015		2015
Basic net income per share:
Numerator:
Net income attributable to Class A shareholders	$	1,033	$	1,033

Denominator:
Basic weighted-average shares		20,002		20,002

Basic net income per share	$	0.05	$	0.05

Diluted net income per share:
Numerator:
Net income attributable to Class A shareholders	$	1,033	$	1,033
Add: Additional net income attributable to Class A shares due to increased percentage ownership in OpCo, net of tax, from the conversion of Class B shares		757		757
	$	1,790	$	1,790

Denominator:
Basic weighted-average shares		20,002		20,002
Effect of dilutive securities:
Class B shares (1)		14,413		14,413
Diluted weighted-average shares		34,415		34,415

Diluted net income per share	$	0.05	$	0.05

(1)

Up to the amount of OpCo common units held by Sponsors