DEXCOM INCDXCM

DEXCOM INC Earnings Per Share Disclosure

10-KFiled Feb 27, 20181 min read
Net Loss Per Common Share
Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed using the weighted average number of common shares outstanding and, when dilutive, potential common share equivalents from outstanding options and unvested RSUs settleable in shares of common stock (using the treasury-stock method), and potential common shares from convertible securities (using the if-converted method). Because the Company reported a net loss for the twelve months ended months ended December 31, 2017 and the twelve months ended months ended December 31, 2016, all potential dilutive common shares have been excluded from the computation of the diluted net loss per share for all periods presented, as the effect would have been anti-dilutive.
Outstanding anti-dilutive securities not included in diluted net loss per share attributable to common stockholders calculation (in millions):
 
Years Ended December 31,
 
2017

2016
 
2015
Options outstanding to purchase common stock
0.4

 
0.7

 
1.3

Unvested restricted stock units
2.7

 
3.7

 
4.1

Senior convertible notes
4.0

 
—

 
—

Total
7.1

 
4.4

 
5.4

Historical Timeline

Fiscal YearFiled
2017Feb 27, 2018Showing above
2016Feb 28, 2017

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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