NOTE P. Net Income Per Share Attributable To Common Stockholders

In the calculation of basic net income (loss) per share attributable to common stockholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common stockholders, if any, after recognizing distributed earnings. The Company's participating securities do not participate in undistributed net losses because they are not contractually obligated to do so. The computation of diluted net income (loss) per share attributable to common stockholders reflects the potential dilution that could occur if securities or other contracts to issue common stock that are dilutive were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations attributable to common stockholders, securities or other contracts to issue common stock would not be dilutive to net loss per share and conversion into common stock is assumed not to occur. Diluted net income (loss) per share is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented.

The Company's basic net income (loss) per share attributable to common stockholders is computed as (i) net income (loss) attributable to common stockholders, (ii) less participating share- and unit-based basic earnings (iii) divided by weighted average basic shares outstanding. The Company's diluted net income (loss) per share attributable to common stockholders is computed as (i) basic net income (loss) attributable to common stockholders, (ii) plus diluted adjustments to participating undistributed earnings (iii) divided by weighted average diluted shares outstanding (excluding shares held in treasury).

The following table is a reconciliation of the Company's net income (loss) attributable to common stockholders to basic net income (loss) attributable to common stockholders and to diluted net income (loss) attributable to common stockholders for the years ended December 31, 2013, 2012 and 2011:



	Year Ended December 31, 2013
	Continuing Operations			Discontinued Operations			Total
	(in thousands)
Net loss attributable to common stockholders	$	(388,809	)	$	(449,605	)	$	(838,414	)
Participating basic earnings (a)	(60		)	(70		)	(130		)
Basic loss attributable to common stockholders	(388,869		)	(449,675		)	(838,544		)
Reallocation of participating earnings (a)	—			—			—
Diluted loss attributable to common stockholders	$	(388,869	)	$	(449,675	)	$	(838,544	)



	Year Ended December 31, 2012
	Continuing Operations			Discontinued Operations			Total
	(in thousands)
Net income (loss) attributable to common stockholders	$	496,495		$	(304,210	)	$	192,285
Participating basic earnings (a)	(2,160		)	(869		)	(3,029		)
Basic income (loss) attributable to common stockholders	494,335			(305,079		)	189,256
Reallocation of participating earnings (a)	115			46			161
Diluted income (loss) attributable to common stockholders	$	494,450		$	(305,033	)	$	189,417



	Year Ended December 31, 2011
	Continuing Operations			Discontinued Operations			Total
	(in thousands)
Net income attributable to common stockholders	$	360,365		$	474,124		$	834,489
Participating basic earnings (a)	(6,554		)	(8,624		)	(15,178		)
Basic net income attributable to common stockholders	353,811			465,500			819,311
Reallocation of participating earnings (a)	166			219			385
Diluted income attributable to common stockholders	$	353,977		$	465,719		$	819,696

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(a)

Unvested restricted stock awards and Pioneer Southwest phantom unit awards (prior to the December 2013 Pioneer Southwest merger) represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity owners of the Company or Pioneer Southwest, as applicable. Participating share- or unit-based earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards and phantom unit awards do not participate in undistributed net losses as they are not contractually obligated to do so.

The following table is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the years ended December 31, 2013, 2012 and 2011:



	Year Ended December 31,
	2013 (a)	2012	2011
	(in thousands)
Weighted average common shares outstanding:
Basic	136,130	122,966	116,904
Dilutive common stock options (b)	—	183	190
Contingently issuable—performance shares	—	180	424
Convertible Senior Notes dilution (c)	—	2,991	1,697
Diluted	136,130	126,320	119,215

______________________

(a)

The following common share equivalents were excluded from the weighted average diluted shares for the year ended December 31, 2013 because they would have been anti-dilutive to the loss recorded for the period: (i) 135,190 outstanding options to purchase the Company's common stock, (ii) 200,360 common shares attributable to unvested performance awards and (iii) 1,087,401 common shares related to the 2013 redemption of the Convertible Senior Notes, representing the weighted average portion of the year that is not included in the basic weighted average common shares outstanding.


(b)	Options to purchase 129,918 shares of the Company's common stock were excluded from the diluted income per share calculations for the year ended December 31, 2012 because they would have been anti-dilutive to the calculation.


(c)	Weighted average common shares outstanding have been increased to reflect the dilutive effect that would have resulted if the Convertible Senior Notes had qualified for and been converted during the years ended December 31, 2012 and 2011, respectively.