EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

17. EARNINGS PER SHARE

We determined that the Series B Preferred Shares are a participating security, and accordingly, our basic and diluted net income / loss per share is calculated using the two-class method. Under the two-class method, basic net income / loss per common share is computed by dividing the net income available to common shareholders after deducting contractual amounts of accretion on our Series B Preferred Shares by the weighted-average number of common shares outstanding during the period. Diluted net income / loss per share is computed by dividing the adjusted net income by the weighted-average number of dilutive shares outstanding during the period.

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



	For the Three Months Ended March 31,
	2017			2016
Net loss	$	(11,274	)	$	(40,694	)
Net loss attributable to noncontrolling interests	209			259
Less: preferred share accretion paid in kind (Note 12)	(2,357		)	(4,510		)
Net loss attributable to CME Ltd. available to common shareholders — basic	$	(13,422	)	$	(44,945	)

Effect of dilutive securities
Preferred share accretion paid in kind	—			—
Net loss attributable to CME Ltd. available to common shareholders — diluted	$	(13,422	)	$	(44,945	)

Weighted average outstanding shares of common stock — basic ⁽¹⁾	154,795			147,078
Dilutive effect of employee stock options and RSUs	—			—
Weighted average outstanding shares of common stock — diluted	154,795			147,078

Net loss per share:
Net loss attributable to CME Ltd. — basic and diluted	(0.09		)	(0.31		)

⁽¹⁾

For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of common stock.

At March 31, 2017, 108,844,869 (March 31, 2016: 3,122,121) warrants, stock options, RSUs and shares underlying the Series B Preferred Shares were antidilutive to income from continuing operations and excluded from the calculation of earnings per share. These instruments may become dilutive in the future. As set forth in the Certificate of Designation for the Series B Preferred Shares, the holders of our Series B Preferred Shares are not contractually obligated to share in our losses.