Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2019

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 three months ended March 31, 2018, 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:

	Three Months Ended March 31,
	2019		2018
			*As Adjusted
Numerator:
Net income attributable to Ceridian	$	11.2	$	0.6
Less: Loss from discontinued operations		—		(2.1	)
Net income from continuing operations attributable to Ceridian		11.2		2.7
Less: Senior Preferred Stock dividends declared		—		5.3
Net income (loss) from continuing operations attributable to Ceridian available to common stockholders	$	11.2	$	(2.6	)
Denominator:
Weighted-average shares outstanding - basic		140,149,271		65,314,462
Effect of dilutive equity instruments		6,892,957		—
Weighted-average shares outstanding - diluted		147,042,228		65,314,462
Net income (loss) per share from continuing operations attributable to Ceridian - basic	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - basic	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - basic	$	0.08	$	(0.07	)
Net income (loss) per share from continuing operations attributable to Ceridian - diluted	$	0.08	$	(0.04	)
Net loss per share from discontinued operations - diluted	$	—	$	(0.03	)
Net income (loss) per share attributable to Ceridian - diluted	$	0.08	$	(0.07	)

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:

	Three Months Ended March 31,
	2019		2018
Senior convertible preferred stock		—		16,802,144
Junior convertible preferred stock		—		58,244,308
Stock options		1,059,230		12,055,839
Restricted stock units		—		581,440