Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share

The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Basic weighted average shares outstanding	45,749,252	45,404,315	45,635,483	45,355,671
Effect of potential dilutive shares ⁽¹⁾:
Warrants	—	—	454,150	—
Restricted stock units	—	—	72,615	—
Performance stock units ⁽²⁾	—	—	348,547	—
Diluted weighted average shares outstanding	45,749,252	45,404,315	46,510,795	45,355,671
Anti-dilutive shares excluded from the above reconciliation:
Stock options	126,667	126,667	126,667	126,667
Warrants	4,877,783	4,053,670	—	4,053,670
Restricted stock units	232,408	68,654	—	68,654
Performance stock units ⁽²⁾	521,394	327,109	—	327,109


(1)	For the three months ended September 30, 2018 and the three and nine months ended September 30, 2017, Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive.

(2)

Performance stock units that are dilutive are reflected based on the performance metrics through the balance sheet date. Performance stock units that are anti-dilutive are reflected at their target issuance amounts. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period.