(5) Earnings Per Share

Basic earnings per share (“EPS”) is calculated using the weighted-average number of common shares outstanding during the period and income available to common stockholders, which is calculated by deducting the dividends accumulated for the period on cumulative preferred stock (whether or not earned) and income allocated to preferred stockholders as calculated under the two-class method. In the event the Company has a net loss, the net loss is not allocated to preferred stockholders as the holders do not have a contractual obligation to share in the Company’s losses. The Company considers all of the Series A Preferred Stock to be participating securities as the holders of the preferred stock are entitled contractually to receive a cumulative dividend.

Diluted EPS under the two-class method is computed by giving effect to all potential shares of common stock including common stock issuable upon conversion of the convertible preferred stock, the related convertible dividends for the aggregate five year contractual obligation, and stock options. The denominator is calculated by using the weighted-average number of common shares and common stock equivalents outstanding during the period, assuming conversion at the beginning of the period or at the time of issuance if later. Additionally, when calculating diluted EPS, the Company analyzes the potential dilutive effect of the outstanding preferred stock under the if-converted method, in which it is assumed that the outstanding preferred stock convert to common stock at the beginning of the period. In the event that the if-converted method is more dilutive than the two-class method, the if-converted diluted EPS will be reflected in our financial statements. Common stock equivalents are only included in the diluted EPS calculation when their effect is dilutive.

The following table presents the reconciliations of basic and diluted EPS for the three and six months ended June 24, 2016 and June 26, 2015:


	Three Months Ended				Six Months Ended
	June 24,		June 26,		June 24,		June 26,
(in thousands, except per share amounts)	2016		2015		2016		2015
Numerator - basic and diluted:
Net (loss) income	$	(154,190)	$	15,634	$	(130,466)	$	43,139
Less: loss (income) attributable to noncontrolling interests		92,148		644		93,003		(3,363)
Net (loss) income attributable to CH2M		(62,042)		16,278		(37,463)		39,776
Less: income allocated to preferred stockholders - basic		—		63		—		77
Less: accrued dividends attributable to preferred stockholders		3,612		55		6,176		55
Income available to common stockholders - basic and diluted	$	(65,654)	$	16,160	$	(43,639)	$	39,644

Denominators:
Weighted-average common shares outstanding - basic		25,993		27,340		26,065		27,352
Dilutive effect of common stock equivalents		—		12		—		19
Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents		25,993		27,352		26,065		27,371

Basic net (loss) income per common share	$	(2.53)	$	0.59	$	(1.67)	$	1.45
Diluted net (loss) income per common share	$	(2.53)	$	0.59	$	(1.67)	$	1.45

Due to the existence of net losses for the three and six months ended June 24, 2016, basic and diluted EPS were the same as the effect of potentially dilutive common stock equivalents, including options to purchase 2.6 million of common stock and 5.0 million shares of preferred stock and accumulated preferred stock dividends, would have been antidilutive. For the three and six months ended June 26, 2015, options to purchase 1.4 million shares of common stock were excluded from the diluted EPS calculation because including them would have been antidilutive.