Earnings per Share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to GreenSky, 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 attributable to GreenSky, Inc., adjusted for the assumed exchange of all potentially dilutive Holdco Units for Class A common stock, by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive elements.

Prior to the IPO, the GS Holdings membership structure included Class A, B, C Units and Profits Interests. The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these unaudited consolidated financial statements. Therefore, earnings per share information has not been presented for the three and six months ended June 30, 2017. The basic and diluted earnings per share period for the three and six months ended June 30, 2018, represents only the period from May 24, 2018 to June 30, 2018, which represents the period wherein we had outstanding Class A common stock.

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:



	Three Months Ended June 30,		Six Months Ended June 30,
	2018		2018

Numerator:
Income before income tax expense	$	42,410	$	61,014
Less: Net income attributable to GS Holdings prior to the Reorganization Transactions	19,609		38,213
Less: Net income attributable to noncontrolling interests subsequent to the Reorganization Transactions	15,657		15,657
Less: Income tax expense	1,594		1,594
Net income attributable to GreenSky, Inc. - basic	$	5,550	$	5,550
Add: Reallocation of net income attributable to noncontrolling interests after the Reorganization Transactions from the assumed exchange of common units of GS Holdings for Class A common stock	15,657		15,657
Less: Income tax expense on reallocation of net income attributable to noncontrolling interests⁽¹⁾	3,493		3,493
Net income attributable to GreenSky, Inc. - diluted	$	17,714	$	17,714
Denominator:
Weighted average shares of Class A common stock outstanding - basic	57,399,632		57,399,632
Add: Dilutive effects as shown separately below
Holdco Units that are exchangeable for Class A common stock	128,257,580		128,257,580
Class A common stock options	2,479,889		2,479,889
Holdco warrants exchangeable for Class A common stock	563,458		563,458
Unvested Class A common stock	189,363		189,363
Weighted average shares of Class A common stock outstanding - diluted	188,889,922		188,889,922

Earnings per share of Class A common stock outstanding - basic	$	0.10	$	0.10
Earnings per share of Class A common stock outstanding - diluted ⁽²⁾	$	0.09	$	0.09


⁽¹⁾	For the three and six months ended June 30, 2018 periods, we assumed effective tax rates of 22.3% and 22.3%, respectively.


⁽²⁾	Our calculation of diluted earning per share excludes 472,500 and 472,500 of Class A common stock options for the three and six months ended June 30, 2018, respectively, as their inclusion would have been anti-dilutive.