EPS Calculation

9 Months Ended

Sep. 30, 2022

The following table presents a reconciliation of the (loss)/earnings and shares used in calculating basic and diluted (loss)/earnings per share for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands, Except Per Share Amounts)	2022		2021		2022		2021
Basic (Loss)/Earnings per Share:
Net (loss)/income	$	(55,018)	$	132,511	$	(238,291)	$	284,747
Dividends declared on preferred stock	(8,218)		(8,218)		(24,656)		(24,656)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(174)		(435)		(489)		(915)
Net (loss)/income to available common stockholders - basic	$	(63,410)	$	123,858	$	(263,436)	$	259,176
Basic weighted average common shares outstanding	101,795		110,222		103,609		111,120
Basic (Loss)/Earnings per Share	$	(0.62)	$	1.12	$	(2.54)	$	2.33

Diluted (Loss)/Earnings per Share:
Net (loss)/income to available common stockholders - basic	$	(63,410)	$	123,858	$	(263,436)	$	259,176
Interest expense on Convertible Senior Notes	—		3,920		—		11,743
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	—		435		—		915
Net (loss)/income available to common stockholders - diluted	$	(63,410)	$	128,213	$	(263,436)	$	271,834
Basic weighted average common shares outstanding	101,795		110,222		103,609		111,120
Effect of assumed conversion of Convertible Senior Notes to common shares	—		7,230		—		7,230
Unvested and vested restricted stock units	—		1,064		—		640
Diluted weighted average common shares outstanding (1)	101,795		118,516		103,609		118,990
Diluted (Loss)/Earnings per Share	$	(0.62)	$	1.08	$	(2.54)	$	2.28

(1)The Company had approximately 1.1 million equity instruments outstanding that were determined to be anti-dilutive and were excluded from the calculation of diluted EPS for the nine months ended September 30, 2022. These equity instruments reflect RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $18.03. These equity instruments may continue to have a dilutive impact on future EPS.

During the nine months ended September 30, 2022, the Convertible Senior Notes were determined to be anti-dilutive and were excluded from 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.