EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

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 and the income allocated to these 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 after adjusting for the impact of those dilutive shares on the allocation of income to the Series B Preferred Shares.

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



	For the Three Months Ended March 31,
	2020			2019
Income from operations	$	8,970		$	11,751
Net loss attributable to noncontrolling interests	71			7
Less: income allocated to Series B Preferred Shares	(2,671		)	(3,482		)
Net income attributable to CME Ltd. available to common shareholders — basic	6,370			8,276

Effect of dilutive securities
Dilutive effect of RSUs and employee stock options	12			9
Net income attributable to CME Ltd. available to common shareholders — diluted	$	6,382		$	8,285

Weighted average outstanding shares of common stock — basic ⁽¹⁾	265,036			264,199
Dilutive effect of employee stock options and RSUs	1,755			1,012
Weighted average outstanding shares of common stock — diluted	266,791			265,211

Net income per share:
Attributable to CME Ltd. — basic	$	0.02		$	0.03
Attributable to CME Ltd. — diluted	0.02			0.03


⁽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 rights of the Series A Preferred Share are considered substantially similar to that of our Class A common stock.

Weighted-average equity awards and convertible shares are excluded from the calculation of diluted earnings per share if their effect would be anti-dilutive. The following instruments were anti-dilutive for the periods presented but may be dilutive in future periods:



	For the Three Months Ended March 31,
	2020	2019
RSUs	751	1,064
Total	751	1,064