EPS Calculation (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of reconciliation of the earnings and shares used in calculating basic and diluted EPS

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS for the three and six months ended June 30, 2019 and 2018:



	Three Months Ended June 30,						Six Months Ended June 30,
(In Thousands, Except Per Share Amounts)	2019			2018			2019			2018
Basic EPS:
Net income to common stockholders	$	93,040		$	70,395		$	181,897		$	153,790
Dividends declared on preferred stock	(3,750		)	(3,750		)	(7,500		)	(7,500		)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(276		)	(241		)	(532		)	(460		)
Net income to common stockholders - basic	$	89,014		$	66,404		$	173,865		$	145,830
Basic weighted average common shares outstanding	450,538			398,478			450,449			398,398
Basic EPS	$	0.20		$	0.17		$	0.39		$	0.36

Diluted EPS:
Net income to common stockholders - basic	89,014			66,404			173,865			145,830
Interest expense on Convertible Senior Notes	1,206			—			1,206			—
Net income to common stockholders - diluted	$	90,220		$	66,404		$	175,071		$	145,830
Basic weighted average common shares outstanding	450,538			398,478			450,449			398,398
Effect of assumed Convertible Senior Notes conversion to common shares	8,898			—			4,474			—
Diluted weighted average common shares outstanding (1)	459,436			398,478			454,923			398,398
Diluted EPS	$	0.20		$	0.17		$	0.38		$	0.36

(1)

At June 30, 2019, the Company had approximately 2.4 million equity instruments outstanding that were not included in the calculation of diluted EPS for the three and six months ended June 30, 2019, as their inclusion would have been anti-dilutive. These equity instruments reflect RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $7.42. These equity instruments may have a dilutive impact on future EPS.

During the three and six months ended June 30, 2019, the Convertible Senior Notes were determined to be dilutive and were included in the calculation of diluted EPS under the “if-converted” method. Under this method, the periodic interest expense for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether the conversion option is in or out of the money) are included in the denominator for the purpose of calculating diluted EPS.