Income (Loss) Per Share

9 Months Ended

Sep. 30, 2023

Note 15. Income Per Share

The components of basic and diluted income per share are as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2023			2022			2023			2022
Net income attributable to Viad	$	41,271		$	38,121		$	31,363		$	28,959
Less: Allocation to participating securities		(9,522	)		(9,368	)		(6,194	)		(5,991	)
Convertible preferred stock dividends paid in cash		(1,950	)		(1,950	)		(5,850	)		(5,850	)
Adjustment to the redemption value of redeemable noncontrolling interest		—			—			—			(763	)
Net income allocated to Viad common stockholders (basic)	$	29,799		$	26,803		$	19,319		$	16,355
Add: Allocation to participating securities		98			94			44			46
Net income allocated to Viad common stockholders (diluted)	$	29,897		$	26,897		$	19,363		$	16,401

Basic weighted-average outstanding common shares		20,885			20,612			20,825			20,567
Additional dilutive shares related to share-based compensation		289			277			200			214
Diluted weighted-average outstanding shares		21,174			20,889			21,025			20,781
Income per share:
Basic income per common share attributable to Viad common stockholders	$	1.43		$	1.30		$	0.93		$	0.80
Diluted income per common share attributable to Viad common stockholders	$	1.41		$	1.29		$	0.92		$	0.79

Diluted income per common share is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income available to common stockholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income available to common stockholders and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. We apply the two-class method in calculating income per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends and preferred stock are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income per common share.

We excluded the following weighted-average potential common shares from the calculations of diluted net income per common share during the applicable periods because their inclusion would have been anti-dilutive:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Unvested restricted share-based awards		4		2		42		29
Unvested performance share-based awards		159		—		125		11
Stock options		372		138		372		216