Net Income (Loss) per Share

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

17. Net Income (Loss) per Share

We compute net income (loss) per share of common stock using the treasury stock method.

Basic net income (loss) per share is computed by dividing net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For the calculation of diluted net income (loss) per share, net income (loss) per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net income (loss) per share is computed by dividing the resulting net income (loss) attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the nine months ended September 30, 2018, and 2017, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

The numerators and denominators of the basic and diluted net income (loss) per share computations are calculated as follows:


	Nine Months Ended September 30,
	2018			2017
Numerator:
Net income (loss) attributable to Ceridian	$	(63.2	)	$	(54.2	)
Less: Loss from discontinued operations		(14.8	)		(2.4	)

Net income (loss) from continuing operations attributable to Ceridian		(48.4	)		(51.8	)
Less: Senior Preferred Stock dividends declared		7.7			15.3

Net income (loss) from continuing operations attributable to Ceridian available to common stockholders	$	(56.1	)	$	(67.1	)

Denominator:
Weighted-average shares outstanding – basic and diluted		105,730,178			65,181,373
Net income (loss) per share from continuing operations attributable to Ceridian—basic	$	(0.53	)	$	(1.03	)
Net loss per share from discontinued operations—basic	$	(0.14	)	$	(0.04	)

Net income (loss) per share attributable to Ceridian—basic	$	(0.67	)	$	(1.07	)

Net income (loss) per share from continuing operations attributable to Ceridian—diluted	$	(0.53	)	$	(1.03	)
Net loss per share from discontinued operations—diluted	$	(0.14	)	$	(0.04	)

Net income (loss) per share attributable to Ceridian— diluted	$	(0.67	)	$	(1.07	)

The following potentially dilutive weighted-average shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive:


	Nine Months Ended September 30,
	2018		2017
Senior convertible preferred stock		7,358,603		16,802,144
Junior convertible preferred stock		25,508,456		58,244,308
Stock options		14,127,557		11,349,251
Restricted stock units		561,836		478,325

20. Net Loss per Share

We compute net loss per share of common stock using the treasury stock method.

Basic net loss per share is computed by dividing net loss attributable to Ceridian available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For the calculation of diluted net loss per share, net loss per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net loss per share is computed by dividing the resulting net loss attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. In the years ended December 31, 2017, 2016, and 2015, our potential dilutive shares, such as stock options, RSUs, and shares of senior and junior convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

The numerators and denominators of the basic and diluted net loss per share computations are calculated as follows:


	Year Ended December 31,
	2017			2016			2015
Numerator:
Net loss attributable to Ceridian	$	(9.2	)	$	(92.9	)	$	(104.7	)
Less: Income (loss) from discontinued operations		(6.0	)		12.5			3.7

Net loss from continuing operations attributable to Ceridian		(3.2	)		(105.4	)		(108.4	)
Less: Senior Preferred Stock dividends declared		20.5			14.1			—

Net loss from continuing operations attributable to Ceridian available to common stockholders	$	(23.7	)	$	(119.5	)	$	(108.4	)


Denominator:
Weighted-average shares outstanding—basic		65,204,960			64,988,338			64,924,845
Weighted-average shares outstanding—diluted		65,204,960			64,988,338			64,924,845

Net loss per share from continuing operations attributable to Ceridian—basic and diluted	$	(0.36	)	$	(1.84	)	$	(1.67	)

Net (loss) income per share from discontinued operations—basic and diluted	$	(0.10	)	$	0.19		$	0.06

Net loss per share attributable to Ceridian—basic and diluted	$	(0.46	)	$	(1.65	)	$	(1.61	)

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:


	Year Ended December 31,
	2017		2016		2015
Senior convertible preferred stock		16,802,144		12,601,608		—
Junior convertible preferred stock		58,244,308		58,244,308		58,244,308
Stock options		10,201,105		8,423,124		7,468,081
Unvested RSUs		451,190		155,692		190,477