Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Upon the HoldCo Merger, all outstanding shares of FDH's Class A Common Stock, Class B Common Stock, and Series A Voting Participating Convertible Preferred Stock (Series A Preferred Stock) automatically converted to identical shares of the Company's Class B Common Stock. Other than voting rights, this common stock has the same rights as the Class A Common Stock and therefore both are treated as the same class of stock for purposes of the net income (loss) per share calculation.

Basic net income (loss) per share is calculated by dividing net income (loss) attributable to FDC by the weighted-average shares outstanding during the period, without consideration for any potential dilutive shares. Diluted net income (loss) per share has been computed to give effect to the impact, if any, of shares issuable upon the assumed exercise of the Company’s common stock equivalents, which consist of outstanding stock options and unvested restricted stock. The dilutive effect of potentially dilutive securities is reflected in net income (loss) per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table sets forth the computation of the Company's basic and diluted net loss per share:

	Year ended December 31,
(in millions, except share amounts)	2016		2015			2014
Numerator:
Net income (loss) used in computing net income (loss) per share, basic and diluted	$	420	$	(1,481	)	$	(458	)
Denominator:
Shares used in computing net income (loss) per share, basic (a)	901,671,872		192,263,793			1,000
Effect of dilutive securities	19,329,991		—			—
Total dilutive securities	921,001,863		192,263,793			1,000
Basic net income (loss) per share	$	0.47	$	(7.70	)	$	(458,000	)
Diluted net income (loss) per share (b)	0.46		(7.70		)	(458,000		)
Anti-dilutive shares excluded from diluted net income (loss) per share	20,967,794		26,752,706			—

(a) 2015 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015 and the Class A and Class B common stock outstanding after these transactions. 2014 weighted-average shares calculated using 1,000 shares outstanding prior to the HoldCo Merger and the filing of the Company's prospectus in October 2015.

(b) Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share.