EPS Calculation

6 Months Ended

Jun. 30, 2020

The following table presents a reconciliation of the earnings/(loss) and shares used in calculating basic and diluted earnings/(loss) per share for the three and six months ended June 30, 2020 and 2019:



	Three Months Ended June 30,						Six Months Ended June 30,
(In Thousands, Except Per Share Amounts)	2020			2019			2020			2019
Basic Earnings/(Loss) per Share:
Net income/(loss) to common stockholders	$	96,578		$	93,040		$	(812,417	)	$	181,897
Dividends declared on preferred stock	(8,144		)	(3,750		)	(13,359		)	(7,500		)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(297		)	(276		)	—			(532		)
Net income/(loss) to common stockholders - basic	$	88,137		$	89,014		$	(825,776	)	$	173,865
Basic weighted average common shares outstanding	453,205			450,538			453,092			450,449
Basic Earnings/(Loss) per Share	$	0.19		$	0.20		$	(1.82	)	$	0.39

Diluted Earnings/(Loss) per Share:
Net income/(loss) to common stockholders - basic	$	88,137		$	89,014		(825,776		)	173,865
Interest expense on Convertible Senior Notes	3,893			1,206			—			1,206
Net income/(loss) to common stockholders - diluted	$	92,030		$	90,220		$	(825,776	)	$	175,071
Basic weighted average common shares outstanding	453,205			450,538			453,092			450,449
Effect of assumed Convertible Senior Notes conversion to common shares	28,920			8,898			—			4,474
Effect of Warrants	375			—			—			—
Diluted weighted average common shares outstanding (1)	482,500			459,436			453,092			454,923
Diluted Earnings/(Loss) per Share	$	0.19		$	0.20		$	(1.82	)	$	0.38

(1)

At June 30, 2020, the Company had approximately 38.6 million equity instruments outstanding that were not included in the calculation of diluted EPS for the six months ended June 30, 2020, 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 $7.63 and approximately 37.0 million warrants with a weighted average exercise price of $1.87 per share. These equity instruments may have a dilutive impact on future EPS.

During the six months ended June 30, 2020, the Convertible Senior Notes were determined to be anti-dilutive and were not 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) is included in the denominator for the purpose of calculating diluted EPS. The Convertible Senior Notes may have a dilutive impact on future EPS.