U.S. GAAP guidance—Earnings Per Share provides guidance on the computation and presentation of earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding and contingent shares for which all necessary conditions have been satisfied except for the passage of time. Net income is allocated to Newmark’s outstanding common stock, FPUs, limited partnership units, and Cantor units (See Note 2 — “Limited Partnership Interests”). In addition, in relation to the Newmark OpCo Preferred Investment, the EPUs issued in June 2018 and September 2018 are entitled to a preferred payable-in-kind dividend which is recorded as accretion to the carrying amount of the EPUs and is a reduction to net income available to common stockholders for the calculation of Newmark’s basic earnings per share and fully diluted earnings per share.

The following is the calculation of Newmark’s basic EPS (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Basic earnings per share:
Net income available to common stockholders ⁽¹⁾	$	85,475	$	66,563	$	118,599	$	87,107
Basic weighted-average shares of common stock outstanding		177,020		155,152		178,122		155,348
Basic earnings per share	$	0.48	$	0.43	$	0.67	$	0.56

Fully diluted EPS is calculated utilizing net income available to common stockholders plus net income allocations to the limited partnership interests in Newmark Holdings as the numerator. The denominator comprises Newmark’s weighted-average number of outstanding shares of Newmark common stock to the extent the related units are dilutive and, if dilutive, the weighted-average number of limited partnership interests and other contracts to issue shares of common stock and RSUs. The limited partnership interests generally are potentially exchangeable into shares of Newmark Class A common stock and are entitled to remaining earnings after the deduction for the Preferred Distribution; as a result, they are included in the fully diluted EPS computation to the extent that the effect would be dilutive.

The following is the calculation of Newmark’s fully diluted EPS (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Fully diluted earnings per share:
Net income available to common stockholders	$	85,475	$	66,563	$	118,599	$	87,107
Allocations of net income to limited partnership interests in Newmark Holdings, net of tax		14,025		13,475		3,780		17,473
Net income for fully diluted shares	$	99,500	$	80,038	$	122,379	$	104,580
Weighted-average shares:
Common stock outstanding		177,020		155,152		178,122		155,348
Partnership units ⁽¹⁾		28,466		29,126		5,661		29,356
RSUs		786		157		1,231		196
Other		344		699		399		659
Fully diluted weighted-average shares of common stock outstanding		206,616		185,134		185,413		185,559
Fully diluted earnings per share	$	0.48	$	0.43	$	0.66	$	0.56

For the three and nine months ended September 30, 2019, 61.8 million and 85.4 million potentially dilutive securities, respectfully, were excluded from the computation of fully diluted EPS because their effect would have been anti-dilutive. Anti-dilutive securities for the three months ended September 30, 2019 included 61.7 million limited partnership interests and 0.1 million RSUs. Anti-dilutive securities for the nine months ended September 30, 2019 included 84.9 million limited partnership interests and 0.5 million RSUs. For the three and nine months ended September 30, 2018, there were approximately 77.4 million and 70.7 million potentially dilutive securities, respectfully, excluded from the computation of fully diluted EPS because their effect would have been anti-dilutive. Anti-dilutive securities for the three months ended September 30, 2018 were substantially all limited partnership interests. Anti-dilutive securities for the nine months ended September 30, 2018 included 70.5 million limited partnership units and 0.2 million RSUs.