Net Income per Common Share Attributable to Magellan Health, Inc.

9 Months Ended

Sep. 30, 2021

Net Income per Common Share Attributable to Magellan Health, Inc.

Net Income per Common Share Attributable to Magellan Health, Inc.

NOTE B—Net Income per Common Share Attributable to Magellan Health, Inc.

The following table reconciles income attributable to common shareholders (numerator) and shares (denominator) used in the computations of net income per share attributable to common shareholders (in thousands, except per share data) for the three and nine months ended September 30:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2021		2020		2021
Numerator:
Net (loss) income from continuing operations	$	(17,296)	$	(114)	$	28,742	$	21,932
Accretion of redeemable non-controlling interest		—		(5,033)		—		(5,033)
Net (loss) income from continuing operations after accretion of redeemable non-controlling interest		(17,296)		(5,147)		28,742		16,899
Income from discontinued operations, net of tax		28,943		6,050		84,660		11,165
Net income after accretion of redeemable non-controlling interest	$	11,647	$	903	$	113,402	$	28,064
Denominator:
Weighted average number of common shares outstanding—basic		25,448		26,247		25,078		26,120
Common stock equivalents—stock options		—		—		67		157
Common stock equivalents—RSAs		—		—		22		24
Common stock equivalents—RSUs		—		—		76		174
Common stock equivalents—PSUs		—		—		70		150
Common stock equivalents—employee stock purchase plan		—		—		4		1
Weighted average number of common shares outstanding—diluted		25,448		26,247		25,317		26,626
Net (loss) income per common share—basic:
Continuing operations	$	(0.68)	$	(0.20)	$	1.15	$	0.65
Discontinued operations		1.14		0.23		3.37		0.43
Consolidated operations	$	0.46	$	0.03	$	4.52	$	1.08
Net (loss) income per common share—diluted:
Continuing operations	$	(0.68)	$	(0.20)	$	1.14	$	0.63
Discontinued operations		1.14		0.23		3.34		0.42
Consolidated operations	$	0.46	$	0.03	$	4.48	$	1.05

The weighted average number of common shares outstanding for the three and nine months ended September 30, 2020 and 2021 were calculated using outstanding shares of the Company’s common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the three and nine months ended September 30, 2020 and 2021 represent stock options to purchase shares of the Company’s common stock, RSAs, RSUs, PSUs and stock purchased under the Employee Stock Purchase Plan.

The Company had additional potential dilutive securities outstanding representing 0.6 million and 1.0 million options for the three and nine months ended September 30, 2020, respectively, and 0.3 million and 0.3 million options for the three and nine months ended September 30, 2021, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for the period. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income attributable to common shareholder per common share calculation as the Company uses the treasury stock method of calculating diluted shares.