Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Calculation of Basic Net (Loss) Income Per Share

The following table presents the calculation of basic net (loss) income per share for periods presented:

(in thousands, except per share data):

	Three months ended September 30, 2017			Three months ended September 30, 2016			Nine months ended September 30, 2017			Nine months ended September 30, 2016
Numerator for basic net income (loss) per share:
Net income (loss)	$	38,411		$	(16,645	)	$	34,876		$	61,314
Less: Series B preferred stock dividends		(4,500	)		(4,500	)		(13,500	)		(13,500	)
Less: undistributed earnings attributed to participating securities (basic calculation)		(21,541	)		—			(13,581	)		(27,625	)
Basic net income (loss) attributable to common stockholders	$	12,370		$	(21,145	)	$	7,795		$	20,189
Denominator for basic net income (loss) per share:
Weighted-average shares outstanding		206,714,132			206,380,800			206,529,762			206,261,993
Weighted-average unvested restricted shares outstanding		(4,053,640	)		(4,039,591	)		(3,956,447	)		(4,014,718	)
Denominator for basic net income (loss) per share		202,660,492			202,341,209			202,573,315			202,247,275
Basic net income (loss) per share attributable to common stockholders	$	0.06		$	(0.10	)	$	0.04		$	0.10

Calculation of Diluted Net (Loss) Income Per Share

The following table presents the calculation of diluted net (loss) income per share for periods presented:

	Three months ended September 30, 2017			Three months ended September 30, 2016			Nine months ended September 30, 2017			Nine months ended September 30, 2016
Numerator for diluted net income (loss) per share:
Net income (loss)	$	38,411		$	(16,645	)	$	34,876		$	61,314
Less: Series B preferred stock dividends		(4,500	)		(4,500	)		(13,500	)		(13,500	)
Less: undistributed earnings attributed to participating securities (diluted calculation)		(21,541	)		—			(13,581	)		(26,241	)
Diluted net income (loss) attributable to common stockholders	$	12,370		$	(21,145	)	$	7,795		$	21,573
Denominator for diluted net income (loss) per share:
Weighted-average shares outstanding		206,714,132			206,380,800			206,529,762			206,261,993
Weighted-average unvested restricted shares outstanding		(4,053,640	)		(4,039,591	)		(3,956,447	)		(4,014,718	)
Effect of dilutive potential shares		10,065,629			—			10,065,629			35,327,739
Denominator for diluted net income (loss) per share		212,726,121			202,341,209			212,638,944			237,575,014
Diluted net income (loss) per share attributable to common stockholders	$	0.06		$	(0.10	)	$	0.04		$	0.09

Schedule of Potential Dilutive Common Shares

The following table summarizes shares subject to exercise or vesting conditions as more fully described in Note 9: Capital Stock and Derivative Instruments. These shares could potentially be dilutive in future periods if we realize net income attributable to common and participating stockholders and the contingent or unvested stock is converted to WMIH common stock. The cash payment of $84.4 million, which would be received upon exercise of the warrants, has not been considered as an offset to the dilutive shares under warrants outstanding below.

	Potential dilution to common stock
	Minimum shares		Maximum shares
Restricted shares subject to vesting		4,053,640		4,053,640
Series A Preferred Stock		10,065,629		10,065,629
Warrants outstanding		61,400,000		61,400,000
Dilutive shares to be issued if Series B Preferred Stock conversion is below $2.25		—		1,015,872
Series B Preferred Stock		266,666,667		342,857,143
Potential dilutive shares if converted to common stock		342,185,936		419,392,284