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Net Income Per Share
 3 Months Ended
Mar. 31, 2015
Earnings Per Share [Abstract]  
Net Income Per Share
NET INCOME PER SHARE
Pursuant to the Second Modified Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. (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 three months ended March 31, 2015 and 2014, 125 and 51 warrants were exercised, respectively, resulting in an issuance of 125 and 51 shares of common stock, respectively. As of March 31, 2015, Ambac had 5,039,752 warrants outstanding.
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 used for basic earnings per share 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:
 
Three Months Ended March 31,
 
2015
 
2014
Weighted average number of common shares used for basic earnings per share
45,156,202

 
45,042,823

Effect of potential dilutive shares:
 
 
 
Warrants
1,751,798

 
1,998,028

Stock options
12,841

 
4,891

Restricted stock units
25,013

 
—

Performance stock units
3,145

 
—

Weighted average number of common shares and potential dilutive shares used for diluted earnings per share
46,948,999

 
47,045,742


Stock options to purchase 110,000 shares of common stock were outstanding but not included in the computation of diluted earnings per share because they were antidilutive under the treasury stock method for the three months ended March 31, 2015.