Earnings Per Share

Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted-average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted-average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs, SARs and warrants outstanding during the period.



(In thousands, except share and per share information)	Three Months Ended						Nine Months Ended
(In thousands, except share and per share information)	October 1, 2017			October 2, 2016			October 1, 2017			October 2, 2016
Net income (loss) attributable to Masonite	$	29,478		$	32,009		$	79,927		$	83,192
Less: income (loss) from discontinued operations, net of tax	(139		)	(236		)	(518		)	(608		)
Income (loss) from continuing operations attributable to Masonite	$	29,617		$	32,245		$	80,445		$	83,800

Shares used in computing basic earnings per share	29,086,174			30,416,648			29,579,076			30,496,404
Effect of dilutive securities:
Incremental shares issuable under share compensation plans and warrants	488,619			757,128			557,227			760,605
Shares used in computing diluted earnings per share	29,574,793			31,173,776			30,136,303			31,257,009

Basic earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.02		$	1.06		$	2.72		$	2.75
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.02		)	(0.02		)
Total Basic earnings per common share attributable to Masonite	$	1.01		$	1.05		$	2.70		$	2.73

Diluted earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.00		$	1.03		$	2.67		$	2.68
Discontinued operations attributable to Masonite, net of tax	—			—			(0.02		)	(0.02		)
Total Diluted earnings per common share attributable to Masonite	$	1.00		$	1.03		$	2.65		$	2.66

Anti-dilutive instruments excluded from diluted earnings per common share:
Stock appreciation rights	52,228			—			52,228			—

The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and warrants and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For the three and nine months ended October 1, 2017, common shares issuable for stock appreciation rights which have a higher strike price than our weighted average market price have been excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive.