11. Basic and diluted earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average common shares outstanding during their respective period. Diluted earnings (loss) per share is computed including dilutive potential shares as if they were outstanding shares during the year. Dilutive potential shares include the weighted average number of shares, as of the date such notional units were granted, that would be issued if the unvested notional units outstanding under the LTIP were vested and redeemed for shares under the terms of the LTIP.

Because we reported a loss for the three months ended March 31, 2016, diluted earnings per share are equal to basic earnings per share as the inclusion of potentially dilutive shares in the computation is anti-dilutive.

The following table sets forth the diluted net income and potentially dilutive shares utilized in the per share calculation for the three months ended March 31, 2016 and 2015:


	2016		2015
Numerator:
(Loss) gain from continuing operations attributable to Atlantic Power Corporation	$	(14.9)	$	22.3
Loss from discontinued operations, net of tax		—		(4.8)
Net (loss) income attributable to Atlantic Power Corporation	$	(14.9)	$	17.5
Denominator:
Weighted average basic shares outstanding		121.9		121.5
Dilutive potential shares:
Convertible debentures		—		—
LTIP notional units		0.2		0.9
Potentially dilutive shares		122.1		122.4
Diluted (loss) earnings per share from continuing operations attributable to Atlantic Power Corporation	$	(0.12)	$	0.17
Diluted (loss) per share from discontinued operations		—		(0.03)
Diluted (loss) earnings per share attributable to Atlantic Power Corporation	$	(0.12)	$	0.14

The dilutive effect of our convertible debentures is calculated using the “if-converted method.” Under the if-converted method, the debentures are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented. Interest expense, net of any income tax effects, is added back to the numerator for purposes of the if-converted calculation. Potentially dilutive shares from convertible debentures of 21.6 million and 23.5 million have been excluded from fully diluted shares in the three months ended March 31, 2016 and 2015, respectively, because their impact would be anti-dilutive. Potentially dilutive shares from convertible debentures are anti-dilutive for the three months ended March 31, 2016 because we recorded a net loss. For the three months ended March 31, 2015, adding back the related interest expense, net of tax, under the if-converted method results in potentially dilutive shares from convertible debentures being anti-dilutive.

Potentially dilutive shares from LTIP notional units have been excluded from fully diluted shares in the three months ended March 31, 2016 because we recorded a net loss.