Net Income (Loss) Per Share

Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. Basic net income (loss) per share for the three and nine months ended December 31, 2016 and 2015 is presented below:



	Three Months Ended					Nine Months Ended
	December 31,					December 31,
	2016			2015		2016			2015
	(Amounts in millions, except per share amounts)
Basic Net Income (Loss) Per Common Share:
Numerator:
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders	$	(31	)	$	41	$	(47	)	$	39
Denominator:
Weighted average common shares outstanding⁽¹⁾	161.4			149.5		152.2			148.5
Basic net income (loss) per common share	$	(0.19	)	$	0.27	$	(0.31	)	$	0.26

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(1)	The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16.

Diluted net income (loss) per common share reflects the potential dilutive effect, if any, of the conversion of convertible senior subordinated notes under the "if converted" method. Diluted net income (loss) per common share also reflects share purchase options, including equity-settled share appreciation rights, restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Diluted net income (loss) per common share for the three and nine months ended December 31, 2016 and 2015 is presented below:



	Three Months Ended					Nine Months Ended
	December 31,					December 31,
	2016			2015		2016			2015
	(Amounts in millions, except per share amounts)
Diluted Net Income (Loss) Per Common Share:
Numerator:
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders	$	(31	)	$	41	$	(47	)	$	39
Add:
Interest on convertible notes, net of tax	—			1		—			1
Numerator for diluted net income (loss) per common share	$	(31	)	$	42	$	(47	)	$	40

Denominator:
Weighted average common shares outstanding	161.4			149.5		152.2			148.5
Effect of dilutive securities:
Conversion of notes	—			6.1		—			2.1
Share purchase options	—			3.4		—			3.4
Restricted share units and restricted stock	—			0.4		—			0.4
Adjusted weighted average common shares outstanding	161.4			159.4		152.2			154.4
Diluted net income (loss) per common share	$	(0.19	)	$	0.26	$	(0.31	)	$	0.26

For the three and nine months ended December 31, 2016 and 2015, the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect.



	Three Months Ended		Nine Months Ended
	December 31,		December 31,
	2016	2015	2016	2015
	(Amounts in millions)
Anti-dilutive shares issuable
Conversion of notes	6.2	—	6.1	4.0
Share purchase options	2.7	3.2	2.3	3.4
Restricted share units	0.2	0.1	0.1	0.1
Other issuable shares⁽¹⁾	5.0	0.5	1.7	0.4
Total weighted average anti-dilutive shares issuable excluded from diluted net income per common share	14.1	3.8	10.2	7.9

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(1)	For the three and nine months ended December 31, 2016, includes the impact of the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16.