EPS Calculation

3 Months Ended

Mar. 31, 2023

The following table presents a reconciliation of the (loss)/earnings and shares used in calculating basic and diluted earnings/(loss) per share for the three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
(In Thousands, Except Per Share Amounts)	2023		2022
Basic Earnings/(Loss) per Share:
Net income/(loss)	$	72,784	$	(82,906)
Dividends declared on preferred stock	(8,219)		(8,219)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(158)		(141)
Net income/(loss) available to common stockholders - basic	$	64,407	$	(91,266)
Basic weighted average common shares outstanding	101,900		106,568
Basic Earnings/(Loss) per Share	$	0.63	$	(0.86)

Diluted Earnings/(Loss) per Share:
Net income/(loss) available to common stockholders - basic	$	64,407	$	(91,266)
Interest expense on Convertible Senior Notes	3,955		—
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	158		—
Net income/(loss) available to common stockholders - diluted	$	68,520	$	(91,266)
Basic weighted average common shares outstanding	101,900		106,568
Effect of assumed conversion of Convertible Senior Notes to common shares	7,230		—
Unvested and vested restricted stock units	956		—
Diluted weighted average common shares outstanding (1)	110,086		106,568
Diluted Earnings/(Loss) per Share	$	0.62	$	(0.86)

(1)At March 31, 2023, the Company had approximately 2.2 million equity instruments outstanding that were included in the calculation of diluted EPS for the three months ended March 31, 2023. These equity instruments reflect RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $13.30. These equity instruments may continue to have a dilutive impact on future EPS.

During the three months ended March 31, 2023, 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. The Convertible Senior Notes may have a dilutive impact on future EPS.