Earnings Per Share

Basic and diluted earnings per share are calculated based on the weighted-average number of shares outstanding in each period and dilutive stock options, unvested shares and warrants, to the extent such securities exist and have a dilutive effect on earnings per share. The Company computes basic and diluted earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation method that determines earnings per share for common shares and participating securities according to their participation rights in dividends and undistributed earnings.

A reconciliation of the numerator and denominator of basic and diluted earnings per share follows (dollars in millions, except per share amounts; shares in thousands):



	Three Months Ended March 31,
	2020			2019
Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(27.5	)	$	(20.1	)
Less: amounts allocated to participating securities ⁽¹⁾	(9.5		)	(8.5		)
Net loss attributable to common stockholders	$	(37.0	)	$	(28.6	)

Denominator:
Weighted average shares outstanding- basic and diluted ⁽²⁾	48,472			48,047

Loss per share:
Basic and diluted ⁽²⁾	$	(0.76	)	$	(0.60	)

Dilutive securities outstanding not included in the computation of loss per share as their effect is antidilutive:
Stock options	72			—
Restricted shares	298			18


(1)	Includes dividends accrued during all periods for the Series A Preferred Stock. The Series A Preferred Stock does not participate in undistributed losses.


(2)	The impact of potentially dilutive securities for all periods presented was not considered because the effect would be anti-dilutive in each period.