Earnings Per Share

As discussed in Note 2, "Emergence from Chapter 11," on the Effective Date, the old common stock awards and warrants then outstanding under the Company's prior equity compensation plans were extinguished without recovery.

The Company calculates basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. The Company calculates diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including stock options and restricted stock awards. Warrants generally are included in basic and diluted shares outstanding if there is little or no consideration paid upon exercise of the Warrants. Antidilutive instruments are not considered in this calculation. The Company applies the two-class method to calculate earnings per share. Because both classes of common stock share the same rights in dividends and earnings, earnings per share (basic and diluted) is calculated using both common stock classes.

The following table presents the reconciliation of basic to diluted weighted average common shares (dollars in thousands, except per share data):



	Successor Company						Predecessor Company
	Year Ended December 31, 2019		Period from June 4, 2018 through December 31, 2018				Period from January 1, 2018 through June 3, 2018
Basic Earnings Per Share
Numerator:
Undistributed net income from operations	$	61,257			$	61,425			$	696,156
Basic net income attributable to common shares	$	61,257			$	61,425			$	696,156
Denominator:
Basic weighted average shares outstanding	20,131		20,028				29,338
Basic undistributed net income per share attributable to common shares	$	3.04			$	3.07			$	23.73

Diluted Earnings Per Share
Numerator:
Undistributed net income from operations	$	61,257			$	61,425			$	696,156
Diluted net income attributable to common shares	$	61,257			$	61,425			$	696,156
Denominator:
Basic weighted average shares outstanding	20,131		20,028				29,338
Effect of dilutive options and restricted stock units	153		136				—
Diluted weighted average shares outstanding	20,284		20,164				29,338
Diluted undistributed net income per share attributable to common shares	$	3.02	$	3.05			$	23.73