CPSI 2017 Annual Report

74 The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income (loss) and net income (loss) attributable to common stockholders for the years ended December 31, 2017, 2016, and 2015: (In thousands, except for per share data) 2017 2016 2015 Basic EPS Numerator Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (17,416) $ 3,933 $ 18,343 Less: Net (income) loss attributable to participating securities . . . . 316 (38) (373) Net income (loss) attributable to common stockholders . . . . . . . . . $ (17,100) $ 3,895 $ 17,970 Denominator Weighted average shares outstanding used in basic per common share computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,419 13,255 11,083 Basic EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.27) $ 0.29 $ 1.62 Diluted EPS Numerator Net income (loss) attributable to common stockholders . . . . . . . . . $ (17,100) $ 3,895 $ 17,970 Reallocation of net income (loss) attributable to participating securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — Net income (loss) attributable to common stockholders for diluted EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (17,100) $ 3,895 $ 17,970 Denominator Weighted average shares outstanding used in basic per common share computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,419 13,255 11,083 Weighted average effect of dilutive securities: Performance share awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — Weighted average shares outstanding used in diluted per common share computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,419 13,255 11,083 Diluted EPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.27) $ 0.29 $ 1.62 7. INCOME TAXES The Company accounts for income taxes in accordance with the FASB’s Codification topic, Income Taxes . These provisions require a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company did not have any unrecognized tax positions as of December 31, 2017 and 2016. The federal returns for tax years 2013 through 2016 remain open to examination, and the tax years 2013 through 2016 remain open to examination by certain other taxing jurisdictions to which the Company is subject. Additional years may be open to the extent attributes are being carried forward to an open year. Deferred income taxes arise from the temporary differences in the recognition of income and expenses for tax purposes. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. On December 22, 2017, H.R. 1, commonly known as the Tax Cuts and Jobs Act (the "Act"), was signed into law. Among other things, the Act reduces our corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result we are