Net Income Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Income Per Share

NET INCOME PER SHARE

Predecessor Ambac common stock (and related stock options and restricted stock units) was canceled upon emergence from bankruptcy on the Effective Date. Pursuant to the Reorganization Plan, 45,000,000 shares of new common stock at par value of $0.01 per share and 5,047,138 warrants were issued. Warrants entitle such holders to acquire up to 5,047,138 shares of new common stock at an exercise price of $16.67 per share at any time on or prior to April 30, 2023. For the years ended December 31, 2014 and 2013, 949 and 6,312 warrants, respectively, were exercised, resulting in an issuance of 949 and 2,524 shares of common stock for the years ended December 31, 2014 and 2013. As of December 31, 2014, Successor Ambac had 5,039,877 warrants outstanding. The earnings per share information for Predecessor Ambac is not meaningful to investors in Successor Ambac’s common stock and warrants.

Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding and vested restricted stock units. Diluted net income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding plus all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants issued under the Reorganization Plan and unvested options, restricted stock units and performance stock units granted under employee and director compensation plans.

The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share:

	Successor Ambac		Predecessor Ambac
		Period from May 1	Period from January 1
	Year Ended	through	through	Year Ended
	December 31, 2014	December 31, 2013	April 30, 2013	December 31, 2012
Weighted average number of common shares used for basic earnings per share	45,093,304	45,003,925	302,469,544	302,468,867
Effect of potential dilutive shares:
Warrants	1,786,804	1,297,620	—	—
Stock options	9,807	—	—	—
Restricted stock units	37,812	1,189	109,701	—
Performance stock units	5,526	—	—	—
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share	46,933,253	46,302,734	302,579,245	302,468,867
Anti-dilutive shares excluded from the above reconciliation:
Warrants	—	—	—	—
Stock options	—	855	475,550	805,999
Restricted stock units	—	—	—	71,295
Performance stock units	—	—	—	—