22)

EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income attributable to ordinary equity holders of the Parent Company (the numerator) by the weighted-average number of shares outstanding (the denominator) during the period. Shares that would be issued depending only on the passage of time should be included in the determination of the basic weighted-average number of shares outstanding. Diluted earnings per share should reflect in both the numerator and denominator the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions, to the extent that such assumption would lead to a reduction in basic earnings per share or an increase in basic loss per share. Otherwise, the effects of potential shares are not considered because they generate antidilution.

The amounts considered for calculations of earnings per share in 2018, 2017 and 2016, were as follows:


	2018		2017		2016
Denominator (thousands of shares)
Weighted-average number of shares outstanding¹		45,569,180		43,107,457		42,211,409
Capitalization of retained earnings²		—		1,687,295		1,687,295
Effect of dilutive instruments — mandatorily convertible securities (note 16.2)³		708,153		708,153		708,153

Weighted-average number of shares — basic		46,277,333		45,502,905		44,606,857
Effect of dilutive instruments — share-based compensation (note 21)³		316,970		237,102		226,972
Effect of potentially dilutive instruments — optionally convertible securities (note 16.2)³		1,420,437		2,698,600		3,834,458

Weighted-average number of shares — diluted		48,014,740		48,438,607		48,668,287

Numerator
Net income from continuing operations	Ps	11,044		13,180		14,491
Less: non-controlling interest net income		789		1,417		1,173

Controlling interest net income from continuing operations		10,255		11,763		13,318
Plus: after tax interest expense on mandatorily convertible securities		61		91		119

Controlling interest net income from continuing operations — for basic earnings per share calculations		10,316		11,854		13,437
Plus: after tax interest expense on optionally convertible securities		436		903		1,079

Controlling interest net income from continuing operations — for diluted earnings per share calculations	Ps	10,752		12,757		14,516

Net income from discontinued operations	Ps	212		3,461		713

Basic earnings per share
Controlling interest basic earnings per share	Ps	0.22		0.34		0.32
Controlling interest basic earnings per share from continuing operations		0.22		0.26		0.30
Controlling interest basic earnings per share from discontinued operations		0.00		0.08		0.02

Diluted earnings per share⁴
Controlling interest diluted earnings per share	Ps	0.22		0.34		0.32
Controlling interest diluted earnings per share from continuing operations		0.22		0.26		0.30
Controlling interest diluted earnings per share from discontinued operations		0.00		0.08		0.02

1	The weighted-average number of shares outstanding in 2017 and 2016 reflects the shares issued as a result of the capitalization of retained earnings declared in March 2017 and March 2016, as applicable (note 20.1).

2	According to resolution of the Parent Company’s shareholders’ meeting on April 5, 2018. There was no capitalization of retained earnings in 2018.

The number of Parent Company’s CPOs to be issued under the executive share-based compensation programs, as well as the total amount of Parent Company’s CPOs committed for issuance in the future under the mandatorily and optionally convertible securities, are computed from the beginning of the reporting period. The number of shares resulting from the executives’ stock option programs is determined under the inverse treasury method.

4	For 2018, 2017 and 2016, the effects on the denominator and numerator of potential dilutive shares generate antidilution; therefore, there is no change between the reported basic earnings per share and diluted earnings per share.