Earnings (Loss) per Common Share

6 Months Ended

Jun. 30, 2019

Note 6. 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 outstanding securities 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 outstanding stock options, restricted stock units and performance share units granted to employees and non-employee directors (see Note 14).

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Earnings per common share—basic
Net income attributable to Callaway Golf Company	$	28,931	$	60,867	$	77,578	$	123,722
Weighted-average common shares outstanding—basic	94,074		94,367		94,377		94,670
Basic earnings per common share	$	0.31	$	0.65	$	0.82	$	1.31
Earnings per common share—diluted
Net income attributable to Callaway Golf Company	$	28,931	$	60,867	$	77,578	$	123,722
Weighted-average common shares outstanding—basic	94,074		94,367		94,377		94,670
Outstanding options, restricted stock units and performance share units	1,817		2,561		1,776		2,311
Weighted-average common shares outstanding—diluted	95,891		96,928		96,153		96,981
Dilutive earnings per common share	$	0.30	$	0.63	$	0.81	$	1.28

As of June 30, 2019, the Company had a nominal number of securities that had an anti-dilutive effect on the calculation of diluted earnings per common share. Such securities were excluded from the calculation. As of June 30, 2018, there were no anti-dilutive securities and as such, there were no securities excluded from the calculation of diluted earnings per common share.