Earnings per Share

12 Months Ended

Dec. 31, 2021

Basic and Diluted Earnings per Share

Basic earnings per share of Class A common stock is computed by dividing net income available to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	(in thousands, except per share data)
Numerator:
Net income	$	67,854	$	9,763	$	27,820
Less: net income attributable to non-controlling interests	23,954		5,802		16,095
Net income attributable to Funko, Inc. — basic	$	43,900	$	3,961	$	11,725
Add: Reallocation of net income attributable to non- controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock	—		—		—
Net income attributable to Funko, Inc. — diluted	$	43,900	$	3,961	$	11,725
Denominator:
Weighted-average shares of Class A common stock outstanding — basic	38,392,390		35,270,795		30,897,569
Add: Dilutive common units of FAH, LLC that are convertible into Class A common stock	227,500		304,327		1,064,145
Add: Dilutive Funko, Inc. equity compensation awards	1,990,728		194,891		964,059
Weighted-average shares of Class A common stock outstanding — diluted	40,610,618		35,770,013		32,925,773
Earnings per share of Class A common stock — basic	$	1.14	$	0.11	$	0.38
Earnings per share of Class A common stock — diluted	$	1.08	$	0.11	$	0.36

For the years ended December 31, 2021, 2020 and December 31, 2019 an aggregate of 14.7 million, 19.7 million and 20.1 million of potentially dilutive securities, respectively, were excluded from the weighted-average in the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive. For the years ended December 31, 2021, 2020 and 2019 anti-dilutive securities included 13.2 million, 15.8 million and 19.1 million of common units of FAH, LLC that are convertible into Class A common stock, but were excluded from the computations of diluted earnings per share because the effect would have been anti-dilutive under the if-converted method.

Shares of the Company’s Class B common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.