Earnings (Loss) per Common Share

3 Months Ended

Mar. 31, 2018

Note 5. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share takes into account the potential dilution that could occur if securities, or other contracts to issue common stock, were exercised. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities include options granted pursuant to the Company’s stock option plans and outstanding restricted stock units and performance share units granted to employees and non-employee directors (see Note 13).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended March 31,
	2018			2017
Earnings per common share—basic
Net income	$	62,731		$	25,880
Less: Net income (loss) attributable to non-controlling interests	(124		)	191
Net income attributable to Callaway Golf Company	$	62,855		$	25,689
Weighted-average common shares outstanding—basic	94,975			94,070
Basic earnings per common share	$	0.66		$	0.27
Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	62,855		$	25,689
Weighted-average common shares outstanding—basic	94,975			94,070
Options and restricted stock	2,063			1,878
Weighted-average common shares outstanding—diluted	97,038			95,948
Dilutive earnings per common share	$	0.65		$	0.27

For the three months ended March 31, 2017, securities outstanding totaling approximately 152,000 shares comprised of stock options, have been excluded from the calculation of earnings per common share—diluted as their effect would be antidilutive. There were no securities excluded from the calculation of earnings per common share—diluted for the three months ended March 31, 2018.