Net Income Per Share

Net income per share available to Colfax Corporation common shareholders was computed as follows:



	Year Ended December 31,
	2015		2014		2013
	(In thousands, except share data)
Computation of Net income per share - basic:
Net income available to Colfax Corporation common shareholders	$	167,739	$	370,185	$	158,232
Less: net income attributable to participating securities⁽¹⁾	—		—		(3,740		)
	$	167,739	$	370,185	$	154,492
Weighted-average shares of Common stock outstanding - basic	124,101,033		121,143,790		99,198,570
Net income per share - basic	$	1.35	$	3.06	$	1.56
Computation of Net income per share - diluted:
Net income available to Colfax Corporation common shareholders	$	167,739	$	370,185	$	158,232
Less: net income attributable to participating securities⁽¹⁾	—		—		(3,740		)
	$	167,739	$	370,185	$	154,492
Weighted-average shares of Common stock outstanding - basic	124,101,033		121,143,790		99,198,570
Net effect of potentially dilutive securities - stock options and restricted stock units	768,616		1,522,502		1,167,885
Weighted-average shares of Common stock outstanding - diluted	124,869,649		122,666,292		100,366,455
Net income per share - diluted	$	1.34	$	3.02	$	1.54

⁽¹⁾Net income per share - diluted for the period from January 13, 2012 to April 23, 2013 was calculated consistently with the two-class method in accordance with GAAP, as further discussed below. Subsequent to April 23, 2013 and prior to February 12, 2014, Net income per share - diluted was calculated consistently with the if-converted method in accordance with GAAP, as further discussed below. However, for the year ended December 31, 2013, the calculation under this method was anti-dilutive.

On April 23, 2013, the Company and BDT CF Acquisition Vehicle, LLC (the “BDT Investor”) amended the Certificate of Designations of Series A Perpetual Convertible Preferred Stock of Colfax Corporation to eliminate the right of the Series A Perpetual Convertible Preferred Stock to share proportionately in any dividends or distributions made in respect of the Company’s Common stock. On February 12, 2014, the Company entered into a Conversion Agreement with the BDT Investor pursuant to which the BDT Investor exercised its option to convert 13,877,552 shares of Series A Perpetual Convertible Preferred Stock into 12,173,291 shares of Common stock plus cash. The BDT Investor was the sole holder of all issued and outstanding shares of the Company’s Series A Perpetual Convertible Preferred Stock. See Note 11, “Equity” for further discussion of the Series A Perpetual Convertible Preferred Stock conversion. For periods from January 13, 2012 to April 23, 2013, Net income available to Colfax Corporation common shareholders was allocated to participating securities, while any losses for those periods were not allocated to participating securities. Subsequent to April 23, 2013 and prior to February 12, 2014, the Company’s Net income per share - dilutive was computed using the “if-converted” method. Under the “if-converted” method, Net income per share - dilutive was calculated under the assumption that the shares of Series A Perpetual Convertible Preferred Stock had been converted into shares of Common stock as of the beginning of the respective period. For the years ended December 31, 2014 and 2013, the weighted-average computation of the dilutive effect of potentially issuable shares of Common stock excluded 1.4 million and 12.2 million, respectively, of Common stock equivalents, as inclusion of such shares would be anti-dilutive.

The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method for the years ended December 31, 2015, 2014 and 2013 excludes approximately 3.0 million, 0.8 million and 0.6 million outstanding stock-based compensation awards, respectively, as their inclusion would be anti-dilutive.