Earnings per Common Share

12 Months Ended

Dec. 31, 2019

Note 7. 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 15).

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:



	Years Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Basic earnings per common share	$	0.84	$	1.11	$	0.43

Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	79,408	$	104,740	$	40,806
Weighted-average common shares outstanding—basic	94,251		94,579		94,329
Options and restricted stock	2,036		2,574		2,248
Weighted-average common shares outstanding—diluted	96,287		97,153		96,577
Diluted earnings per common share	$	0.82	$	1.08	$	0.42

Antidilutive securities excluded from the earnings per share computation are summarized as follows:


•	For the years ended December 31, 2019 and 2018, there were no securities excluded from the calculation of earnings per common share—diluted.

•

For the year ended December 31, 2017, securities outstanding totaling approximately 129,000, compromised of anti-dilutive options were excluded from the calculation of earnings per common share—diluted.