(Loss) Earnings per Share

6 Months Ended

Jun. 30, 2020

Basic (loss) earnings per share of Class A and Class B-1 Common Stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of Class A and Class B-1 Common Stock outstanding during the period. Diluted (loss) earnings per share of Class A and Class B-1 Common Stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of Class A and Class B-1 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 (loss) earnings per share of Class A and Class B-1 Common Stock (in thousands, except per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(11,996)	$	(16,902)	$	103,071	$	(64,783)
Denominator:
Weighted-average shares outstanding - basic ⁽¹⁾	147,392		128,016		147,286		127,852
Effect of dilutive securities:
Stock options	—		—		278		—
Restricted stock units	—		—		745		—
Weighted-average shares outstanding - diluted	147,392		128,016		148,309		127,852
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.'s common stockholders:
Class A and Class B-1 basic	$	(0.08)	$	(0.13)	$	0.70	$	(0.51)
Class A and Class B-1 diluted	$	(0.08)	$	(0.13)	$	0.69	$	(0.51)

⁽¹⁾During the three months ended June 30, 2019, pursuant to the Company’s certificate of incorporation, the Company converted all 12.3 million of its issued and outstanding shares of Class B-1 Common Stock and such shares of Class B-1 Common Stock have been retired and may not be reissued by the Company. The weighted-average shares for the three and six months ended June 30, 2020 do not include Class B-1 Common Stock.

Shares of the Company's Class B Common Stock do not share in the earnings or losses of the Company and, therefore, are 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.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A and Class B-1 Common Stock (in thousands):


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020		2019
Stock options	4,008	⁽⁴⁾	8,407	⁽⁴⁾	671	⁽¹⁾	8,407	⁽⁴⁾
Restricted stock units	9,372	⁽⁴⁾	2,894	⁽⁴⁾	—		2,894	⁽⁴⁾
Performance stock units	3,054	⁽⁴⁾	465	⁽⁴⁾	3,054	⁽²⁾	465	⁽⁴⁾
Shares of Class B Common Stock	152,117	⁽³⁾	170,941	⁽³⁾	152,117	⁽³⁾	170,941	⁽³⁾

(1)Excluded from the computation of diluted earnings per share of Class A Common Stock because the exercise price of the stock options exceeded the average market price of the Class A Common Stock during the period (out-of-the-money).

(2)Excluded from the computation of diluted earnings per share of Class A Common Stock because the performance vesting conditions were not met for the six months ended June 30, 2020.

(3)Shares of Class B Common Stock are considered potentially dilutive shares of Class A and Class B-1 Common Stock. Shares of Class B Common Stock have been excluded from the computations of diluted earnings per share of Class A and Class B-1 Common Stock because the effect of their inclusion would have been anti-dilutive under the if-converted method. As noted above, the weighted-average shares for the three and six months ended June 30, 2020 do not include Class B-1 Common Stock.

(4)Excluded from the computation of diluted loss per share of Class A and Class B-1 Common Stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for three months ended June 30, 2020 and the three and six months ended June 30, 2019. As noted above, the weighted-average shares for the three and six months ended June 30, 2020 do not include Class B-1 Common Stock.