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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic:
Net income (loss) attributable to ARRIS International plc	$	35,754	$	30,336	$	22,154	$	(8,762	)
Weighted average shares outstanding		184,216		186,803		184,376		188,291
Basic earnings (loss) per share	$	0.19	$	0.16	$	0.12	$	(0.05	)
Diluted:
Net income (loss) attributable to ARRIS International plc	$	35,754	$	30,336	$	22,154	$	(8,762	)
Weighted average shares outstanding		184,216		186,803		184,376		188,291
Net effect of dilutive equity awards		1,453		2,199		1,912		—

Total		185,669		189,002		186,288		188,291
Diluted earnings (loss) per share	$	0.19	$	0.16	$	0.12	$	(0.05	)

Potential dilutive shares include stock options, unvested restricted and performance awards and warrants.

For the three months ended June 30, 2018 and 2017, approximately 2.0 million and 3.4 million of the equity-based awards were excluded from the computation of diluted earnings per share. For the six months ended June 30, 2018 approximately 1.9 million of the equity-based awards were excluded from the computation of diluted earnings per share. For the six months ended June 30, 2017, all the equity-based awards were excluded from the computation of diluted earnings per share. These exclusions are made if the Company has net losses, of which have an anti-dilutive effect.

During the six months ended June 30, 2018, the Company issued 1.5 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 vesting in the first half of 2018. The dilutive effect of these 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.