Earnings (Loss) per Common Share

9 Months Ended

Sep. 30, 2019

Note 6. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share takes into account the potential dilution that could occur if outstanding securities were exercised. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities include outstanding stock options, restricted stock units and performance share units granted to employees and non-employee directors (see Note 14).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	31,048	$	9,517	$	108,626	$	133,239
Weighted-average common shares outstanding—basic	94,100		94,477		94,284		94,605
Basic earnings per common share	$	0.33	$	0.10	$	1.15	$	1.41
Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	31,048	$	9,517	$	108,626	$	133,239
Weighted-average common shares outstanding—basic	94,100		94,477		94,284		94,605
Outstanding options, restricted stock units and performance share units	2,187		2,843		1,913		2,471
Weighted-average common shares outstanding—diluted	96,287		97,320		96,197		97,076
Dilutive earnings per common share	$	0.32	$	0.10	$	1.13	$	1.37

As of September 30, 2019, the Company had a nominal number of securities that had an anti-dilutive effect on the calculation of diluted earnings per common share. Such securities were excluded from the calculation. As of September 30, 2018, there were no anti-dilutive securities and as such, there were no securities excluded from the calculation of diluted earnings per common share.