Earnings Per Share

12 Months Ended

Dec. 31, 2020

Basic and diluted earnings per share are calculated based on the weighted-average number of shares outstanding in each period and dilutive stock options, unvested shares and warrants, to the extent such securities exist and have a dilutive effect on earnings per share. The Company computes basic and diluted earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation method that determines earnings per share for common shares and participating securities according to their participation rights in dividends and undistributed earnings.

A reconciliation of the numerator and denominator of basic and diluted earnings per share follows (dollars in millions, except per share amounts; shares in thousands):


	Year Ended December 31,
	2020		2019		2018

Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(116.1)	$	(74.8)	$	(205.7)
Less: Amounts allocated to participating securities (1)	(39.5)		(35.7)		(32.4)
Net loss attributable to common stockholders	$	(155.6)	$	(110.5)	$	(238.1)

Denominator:
Weighted average shares outstanding- basic and diluted (2)	48,776		48,280		48,028

Basic and diluted loss per share (2)	$	(3.19)	$	(2.29)	$	(4.96)

Dilutive securities outstanding not included in the computation of diluted loss per share as their effect is antidilutive:
Stock options	712		—		83
Restricted shares	981		67		198

(1)Includes dividends accrued during all periods for the Series A Preferred Stock. The Series A Preferred Stock does not participate in undistributed losses.

(2)The impact of potentially dilutive securities for all periods were not considered because the effect would be anti-dilutive in each of those periods.

Share Repurchase Transactions

On December 15, 2017, the Company's Board of Directors authorized a share repurchase program of up to $50.0 million of the Company's issued and outstanding common stock from time to time. The timing and size of repurchases will be determined based on market conditions and other factors. The authorization does not obligate the repurchase of any shares and the Company may repurchase shares of common stock at any time without prior notice. The share repurchases will be made in accordance with applicable securities laws in open market or privately negotiated transactions. The authorization does not have a specified expiration date, and the share repurchase program may be suspended, recommenced or discontinued at any time or from time to time without prior notice.

In 2018, the Company repurchased 156,818 shares of its common stock at an average price of $12.64 per share through market purchases. At December 31, 2020, the Company had $46.0 million of repurchase authorization available under the December 2017 authorization.