Net (Loss) Income per Share

12 Months Ended

Dec. 31, 2020

20. Net (Loss) Income per Share

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

Basic net (loss) income per share is computed by dividing net (loss) income 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) income per share, net (loss) income per share is adjusted by the effect of dilutive securities, including awards under our share-based compensation plans. Diluted net (loss) income per share is computed by dividing the resulting net (loss) income attributable to Ceridian available to common stockholders by the weighted-average number of fully diluted common shares outstanding. In the years ended December 31, 2020 and 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 basic and diluted net (loss) income per share computations were calculated as follows:

	Year Ended December 31,
	2020			2019		2018
	(Dollars in millions, except share and per share data)
Numerator:
Net (loss) income attributable to Ceridian	$	(4.0	)	$	78.7	$	(60.6	)
Less: Loss from discontinued operations		—			—		(25.8	)
Net (loss) income from continuing operations attributable to Ceridian		(4.0	)		78.7		(34.8	)
Less: Senior Preferred Stock dividends declared		—			—		7.7
Net (loss) income from continuing operations attributable to Ceridian available to common stockholders	$	(4.0	)	$	78.7	$	(42.5	)
Denominator:
Weighted-average shares outstanding—basic		146,774,471			142,049,112		114,049,682
Effect of dilutive equity instruments		—			6,707,480		—
Weighted-average shares outstanding—diluted		146,774,471			148,756,592		114,049,682
Net (loss) income per share from continuing operations attributable to Ceridian—basic	$	(0.03	)	$	0.55	$	(0.37	)
Net loss per share from discontinued operations—basic	$	—		$	—	$	(0.23	)
Net (loss) income per share attributable to Ceridian—basic	$	(0.03	)	$	0.55	$	(0.60	)
Net (loss) income per share from continuing operations attributable to Ceridian—diluted	$	(0.03	)	$	0.53	$	(0.37	)
Net loss per share from discontinued operations—diluted	$	—		$	—	$	(0.23	)
Net (loss) income per share attributable to Ceridian—diluted	$	(0.03	)	$	0.53	$	(0.60	)

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

	Year Ended December 31,
	2020		2019		2018
Senior convertible preferred stock		—		—		5,523,993
Junior convertible preferred stock		—		—		19,148,814
Term-based stock options		7,135,159		3,307,719		14,227,487
Restricted stock units		745,955		18,980		587,283
Performance stock units		229,433		—		—