Income Per Share

9 Months Ended

Sep. 30, 2024

Note 14. Income Per Share

The components of basic and diluted income per share are as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2024			2023			2024			2023
Net income attributable to Viad	$	48,615		$	41,271		$	52,809		$	31,363
Less: Allocation to participating securities		(11,187	)		(9,522	)		(11,282	)		(6,194	)
Convertible preferred stock dividends		(1,950	)		(1,950	)		(5,850	)		(5,850	)
Net income allocated to Viad common stockholders (basic)	$	35,478		$	29,799		$	35,677		$	19,319
Add: Allocation to participating securities		177			98			165			44
Net income allocated to Viad common stockholders (diluted)	$	35,655		$	29,897		$	35,842		$	19,363

Basic weighted-average outstanding common shares		21,166			20,885			21,107			20,825
Additional dilutive shares related to share-based compensation		449			289			410			200
Diluted weighted-average outstanding shares		21,615			21,174			21,517			21,025
Income per share:
Basic income attributable to Viad common stockholders	$	1.68		$	1.43		$	1.69		$	0.93
Diluted income attributable to Viad common stockholders	$	1.65		$	1.41		$	1.67		$	0.92

Diluted income per common share is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income available to common stockholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income available to common stockholders and assumes conversion of all potential shares

including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. We apply the two-class method in calculating income per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends and convertible preferred stock are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income per common share.

We excluded the following weighted-average potential common shares from the calculations of diluted net income per common share during the applicable periods because their inclusion would have been anti-dilutive:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2024		2023		2024		2023
Unvested restricted share-based awards		2		4		18		42
Unvested performance share-based awards		152		159		119		125
Stock options		138		372		138		372