Earnings Per Share

3 Months Ended

Mar. 31, 2017

10. EARNINGS PER SHARE

Basic earnings per share, or EPS, is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS was computed using the treasury stock method for the first quarter of 2016, by dividing net income by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of any outstanding dilutive securities. During the first quarter of 2017, the company changed its method for calculating dilutive EPS for its convertible debt instruments from the treasury stock method to the if-converted method, as the company changed its financial strategy with respect to cash settlement of the convertible debt instruments. As such, the company computed EPS for the first quarter of 2017 by dividing net income on an if-converted basis, by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of any outstanding dilutive securities.

The basic and diluted EPS are calculated as follows (in thousands):


	Three Months Ended March 31,
	2017		2016

Basic EPS:
Net loss attributable to Green Plains	$	(3,597)	$	(24,138)
Weighted average shares outstanding - basic		38,420		38,197
EPS - basic	$	(0.09)	$	(0.63)

EPS - diluted	$	(0.09)	$	(0.63)

Ten thousand shares of stock options were excluded from the computation of diluted EPS for the three months ended March 31, 2016, because the exercise prices of the corresponding awards were greater than the average market price of the company’s common stock during the period. Also excluded from the computation of diluted EPS were 12.1 million shares and 108 thousand shares related to the effect of the convertible debt and stock-based compensation awards for the three months ended March 31, 2017, and 2016, respectively, as the inclusion of these shares would have been antidilutive.