CJ 2017 Annual Report

The following is a reconciliation of the components of the basic and diluted earnings per share calculations for the applicable periods: Successor Predecessor (In thousands, except per share amounts) Years Ended December 31, 2017 2016 2015 Numerator: Net income (loss) attributed to common stockholders $ 22,457 $ (944,289) $ (872,542) Denominator: Weighted average common shares outstanding - basic 61,208 118,305 102,853 Effect of potentially dilutive securities: Stock options — — — Restricted stock 4 — — Warrants 248 — — Weighted average common shares outstanding - diluted 61,460 118,305 102,853 Net income (loss) per common share: Basic $ 0.37 $ (7.98) $ (8.48) Diluted $ 0.37 $ (7.98) $ (8.48) A summary of securities excluded from the computation of basic and diluted earnings per share is presented below for the applicable periods: Successor Predecessor (In thousands) Years Ended December 31, 2017 2016 2015 Basic earnings per share: Unvested restricted stock 537 1,529 2,610 Diluted earnings per share: Anti-dilutive stock options 235 4,808 3,661 Anti-dilutive warrants — — — Anti-dilutive restricted stock 524 1,490 2,125 Potentially dilutive securities excluded as anti-dilutive 759 6,298 5,786 On January 6, 2017, the Debtors substantially consummated the Restructuring Plan and emerged from the Chapter 11 Proceeding. As part of the transactions undertaken pursuant to the Restructuring Plan, all of the existing shares of the Predecessor common equity that were used in the above earnings per share calculations of the Predecessor were canceled as of the Plan Effective Date. Recent Accounting Pronouncements . In May 2014, the FASB issued a comprehensive new revenue recognition standard, Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") that will supersede existing revenue recognition guidance under U.S. GAAP. In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for the following transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements, including additional disclosures of the C&J ENERGY SERVICES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 82