Earnings Per Share

12 Months Ended

Dec. 31, 2021

Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued.

We use the if-converted method to determine the potential dilutive effect of outstanding CW Units (and corresponding shares of outstanding Class B common stock), the treasury stock method to determine the potential dilutive effect of unvested restricted stock units assuming that the proceeds will be used to purchase shares of Class A common stock and the contingently issuable share method to determine the potential dilutive effect of unvested performance stock units.

The following table summarizes the basic and diluted earnings per share calculations:


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income attributable to Cactus Inc.—basic	$	49,593	$	34,446	$	85,612
Net income attributable to non-controlling interest(1)	13,744		19,934		56,012
Net income attributable to Cactus Inc.—diluted(1)	$	63,337	$	54,380	$	141,624
Denominator:
Weighted average Class A shares outstanding—basic	55,398		47,457		44,983
Effect of dilutive shares	20,709		28,038		30,370
Weighted average Class A shares outstanding—diluted	76,107		75,495		75,353

Earnings per Class A share—basic	$	0.90	$	0.73	$	1.90
Earnings per Class A share—diluted(1)	$	0.83	$	0.72	$	1.88

(1)The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 27.0% for the year ended December 31, 2021 and 24.0% for the years ended December 31, 2020 and 2019.