Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2019

Basic earnings per share (or "EPS") is computed by dividing net income (loss) by the weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income (loss), as adjusted for changes to income that would result from the assumed settlement of the dilutive equity instruments included in diluted weighted average common shares outstanding, by the diluted weighted average common shares outstanding. For all periods presented, we have outstanding various equity-based compensation awards that are considered in our diluted EPS calculation (when to do so would be dilutive), and is inclusive of awards disclosed in Note 17 to these condensed consolidated financial statements. For those instruments that are indexed to our common stock, they are generally dilutive when the market price of the underlying indexed share of common stock is in excess of the exercise price. Additionally, in connection with the Delek/Alon Merger, we assumed certain equity instruments, including conversion options (associated with the Convertible Notes) and Warrants, that may be dilutive (see discussion of these instruments in Note 10). The Convertible Notes conversion options were dilutive during the period they were outstanding when the incremental EPS calculated by dividing the increase in income associated with the elimination of interest expense on the convertible debt, net of tax, by the number of shares that would be issued upon conversion using the treasury stock method (which is applicable because of the cash settlement feature associated with the underlying principal) is dilutive to the overall diluted EPS calculation. The Warrants are generally dilutive during the period they are outstanding when the market price of the underlying indexed share of common stock is in excess of the exercise price. All such instruments that may otherwise be dilutive may not be dilutive when there is a net loss for the period. On September 17, 2018, Delek settled the Convertible Notes for a combination of cash and shares of New Delek Common Stock (See Note 10) and in November 2018, Delek entered into Warrant Unwind Agreements (the "Unwind Agreements" - See Note 10) with the holders of our outstanding common stock warrants; therefore, these instruments were only potentially dilutive for EPS for the three months ended March 31, 2018.

The following table sets forth the computation of basic and diluted earnings per share.



	Three Months Ended
	March 31,
	2019		2018
Numerator:
Numerator for EPS - continuing operations
Income (loss) from continuing operations	$	154.4	$	(17.3	)
Less: Income from continuing operations attributed to non-controlling interest	5.1		6.8
Numerator for diluted EPS - continuing operations attributable to Delek	$	149.3	$	(24.1	)

Numerator for EPS - discontinued operations
Loss from discontinued operations	$	—	$	(8.2	)
Less: Income from discontinued operations attributed to non-controlling interest	—		8.1
Loss from discontinued operations attributable to Delek	$	—	$	(16.3	)

Denominator:
Weighted average common shares outstanding (denominator for basic EPS)	77,793,278		82,252,405
Dilutive effect of stock-based awards	653,412		—
Weighted average common shares outstanding, assuming dilution (denominator for diluted EPS)	78,446,690		82,252,405

EPS:
Basic income (loss) per share:
Income (loss) from continuing operations	$	1.92	$	(0.29	)
Loss from discontinued operations	$	—	(0.20		)
Total basic income (loss) per share	$	1.92	$	(0.49	)
Diluted income (loss) per share:
Income (loss) from continuing operations	$	1.90	$	(0.29	)
Loss from discontinued operations	$	—	(0.20		)
Total diluted income (loss) per share	$	1.90	$	(0.49	)

The following equity instruments were excluded from the diluted weighted average common shares outstanding because their effect would be antidilutive:

Antidilutive stock-based compensation (because average share price is less than exercise price)	2,173,510		820,730
Antidilutive due to loss	—		1,112,419
Total antidilutive stock-based compensation	2,173,510		1,933,149

Antidilutive convertible debt instruments due to loss	—		1,458,780

Antidilutive warrants due to loss	—		161,344