Earnings Per Share

We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic earnings per share calculations using the two-class method. All of our restricted common shares are currently participating securities. Our PSUs are contingently issuable shares which are included in our diluted earnings per share calculations which do not include voting or dividend rights.

Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted-average shares outstanding during the period.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Weighted-average shares:
Common shares outstanding	78,237,199		77,989,933		78,197,091		78,230,011
Restricted common shares	569,617		680,249		569,453		646,299
Total weighted-average shares	78,806,816		78,670,182		78,766,544		78,876,310

Percentage of weighted-average shares:
Common shares outstanding	99.28	%	99.14	%	99.28	%	99.18	%
Restricted common shares	0.72	%	0.86	%	0.72	%	0.82	%
Total percentage of weighted-average shares	100.00	%	100.00	%	100.00	%	100.00	%

The calculations of both basic and diluted earnings per share are as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Earnings per share – Basic:
Net income	$	57,431		$	27,437		$	92,754		$	83,729
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(415		)	(237		)	(671		)	(686		)
Earnings available to common shareholders – Basic	$	57,016		$	27,200		$	92,083		$	83,043

Weighted-average common shares outstanding – Basic	78,237,199			77,989,933			78,197,091			78,230,011

Earnings per common share – Basic	$	0.73		$	0.35		$	1.18		$	1.06

Earnings per share – Diluted:
Net income	$	57,431		$	27,437		$	92,754		$	83,729
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(415		)	(237		)	(671		)	(686		)
Earnings available to common shareholders – Diluted	$	57,016		$	27,200		$	92,083		$	83,043

Weighted-average common shares outstanding – Basic	78,237,199			77,989,933			78,197,091			78,230,011
Effect of dilutive shares⁽²⁾	137,810			32,235			169,053			35,804
Weighted-average common shares outstanding – Diluted	78,375,009			78,022,168			78,366,144			78,265,815

Earnings per common share – Diluted	$	0.73		$	0.35		$	1.18		$	1.06

(1)

For the three months ended September 30, 2017 and 2016, distributed and undistributed earnings to restricted shares were 0.72% and 0.86%, respectively, of net income. For the nine months ended September 30, 2017 and 2016, distributed and undistributed earnings to restricted shares were 0.72% and 0.82%, respectively, of net income. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings.


(2)	For all periods presented, dilutive shares represented contingently issuable shares.