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Earnings Per Share
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Prior to June 30, 2018, certain of Mattel's restricted stock units ("RSUs") were considered participating securities because they contained nonforfeitable rights to dividend equivalents.
Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.
The following table reconciles earnings per common share for the three and nine months ended September 30, 2019 and 2018: 
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
2019
 
September 30,
2018
 
September 30,
2019
 
September 30,
2018
 
(In thousands, except per share amounts)
Basic
 
 
 
 
 
 
 
Net income (loss)
$
70,596

 
$
6,278

 
$
(213,687
)
 
$
(542,938
)
Less: Net income (loss) allocable to participating RSUs (a)
—

 
—

 
—

 
—

Net income (loss) available for basic common shares
$
70,596

 
$
6,278

 
$
(213,687
)
 
$
(542,938
)
Weighted average number of common shares
346,698

 
345,285

 
346,210

 
344,774

Basic net income (loss) per common share
$
0.20

 
$
0.02

 
$
(0.62
)
 
$
(1.57
)
Diluted
 
 
 
 
 
 
 
Net income (loss)
$
70,596

 
$
6,278

 
$
(213,687
)
 
$
(542,938
)
Less: Net income (loss) allocable to participating RSUs (a)
—

 
—

 
—

 
—

Net income (loss) available for diluted common shares
$
70,596

 
$
6,278

 
$
(213,687
)
 
$
(542,938
)
Weighted average number of common shares
346,698

 
345,285

 
346,210

 
344,774

Weighted average number of common equivalent shares from:

 

 

 

Dilutive stock options and non-participating RSUs (b)
1,789

 
387

 
—

 
—

Weighted average number of common and potential common shares
348,487

 
345,672

 
346,210

 
344,774

Diluted net income (loss) per common share
$
0.20

 
$
0.02

 
$
(0.62
)
 
$
(1.57
)
 _______________________________________
(a)
Mattel did not have participating RSUs for the three and nine months ended September 30, 2019 and for the three months ended September 30, 2018. For the nine months ended September 30, 2018, Mattel did not allocate its net loss to its participating RSUs as its participating RSUs were not obligated to share in the losses of the Company.
(b)
Nonqualified stock options and nonparticipating RSUs totaling 25.3 million and 22.6 million shares were excluded from the calculation of diluted net income per common share for the three months ended September 30, 2019 and 2018, respectively, because their effect would be antidilutive. Mattel was in a net loss position for the nine months ended September 30, 2019 and 2018, and, accordingly, all outstanding nonqualified stock options and non-participating RSUs were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive.