Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Note 17. Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share (“EPS”) computations for the periods indicated (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic:
Net income attributable to ARRIS International plc	$	47,079	$	88,320	$	69,233	$	79,558
Weighted average shares outstanding		178,106		187,064		182,132		187,878
Basic earnings per share	$	0.26	$	0.47	$	0.38	$	0.42
Diluted:
Net income attributable to ARRIS International plc	$	47,079	$	88,320	$	69,233	$	79,558
Weighted average shares outstanding		178,106		187,064		182,132		187,878
Net effect of dilutive equity awards		1,231		1,877		1,685		2,386
Total		179,337		188,941		183,817		190,264
Diluted earnings per share	$	0.26	$	0.47	$	0.38	$	0.42

Potential dilutive shares include unvested restricted and performance awards and warrants.

For the three months ended September 30, 2018 and 2017, approximately 1.2 million and 1.0 million of the equity-based awards, respectively, were excluded from the computation of diluted earnings per share. For the nine months ended September 30, 2018 and 2017 approximately 1.0 million and 1.7 million of the equity-based awards, respectively, were excluded from the computation of diluted earnings per share. These exclusions are made if the exercise price of these equity-based awards is in excess of the average market price of the shares for the period, or if the Company has net losses, both of which have an anti-dilutive effect.

During the nine months ended September 30, 2018, the Company issued 2.0 million ordinary shares related to the vesting of restricted shares, as compared to 2.6 million shares for the twelve months ended December 31, 2017.

The warrants have a dilutive effect in those periods in which the average market price of the shares exceeds the current effective conversion price (under the treasury stock method) and are not subject to performance conditions. There is no incremental vesting in the first nine months of 2018. The dilutive effect of outstanding vested shares was immaterial.

The Company has not paid cash dividends on its shares since its inception. Any future determination to pay dividends will be at the discretion of the Board of Directors and will be dependent on then-existing conditions, including the Company’s financial condition, results of operations, capital requirements, contractual and legal restrictions, business prospects and other factors that the Board considers relevant. The Credit Agreement governing the Company’s senior secured credit facilities contains restrictions on the Company’s ability to pay dividends on its ordinary shares.