Earnings Per Share

9 Months Ended

Sep. 30, 2022

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021. All per share amounts, common shares outstanding and common equity-based awards for all periods presented have been adjusted on a retroactive basis to reflect the reverse stock split.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2022		2021		2022		2021
Basic Earnings Per Share:


Net income	$	277,612	$	66,324	$	490,462	$	188,521


Dividends on preferred stock	13,747		13,748		41,242		44,711
Dividends and undistributed earnings allocated to participating restricted stock units	1,383		200		2,225		532
Net income attributable to common stockholders, basic	$	262,482	$	52,376	$	446,995	$	143,278
Basic weighted average common shares	86,252,104		76,943,355		86,107,979		71,298,088
Basic earnings per weighted average common share	$	3.04	$	0.68	$	5.19	$	2.01
Diluted Earnings Per Share:
Net income attributable to common stockholders, basic	$	262,482	$	52,376	$	446,995	$	143,278
Reallocation impact of undistributed earnings to participating restricted stock units	70		(13)		(18)		(24)

Interest expense attributable to convertible notes	4,877		4,848		14,720		12,755
Net income attributable to common stockholders, diluted	$	267,429	$	57,211	$	461,697	$	156,009
Basic weighted average common shares	86,252,104		76,943,355		86,107,979		71,298,088
Effect of dilutive shares issued in an assumed vesting of performance share units	140,833		—		157,200		60,190
Effect of dilutive shares issued in an assumed conversion	9,739,163		9,739,163		9,855,665		8,633,251
Diluted weighted average common shares	96,132,100		86,682,518		96,120,844		79,991,529
Diluted earnings per weighted average common share	$	2.78	$	0.66	$	4.80	$	1.95

For the three and nine months ended September 30, 2022 and 2021, participating RSUs were included in the calculations of basic and diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the three and nine months ended September 30, 2022 and the nine months ended September 30, 2021, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method. For the three months ended September 30, 2021, PSUs were excluded from the calculation of diluted earnings per share, as their inclusion would have been antidilutive.

For the three and nine months ended September 30, 2022, the assumed conversion of the Company’s convertible senior notes was included in the calculation of diluted earnings per share under the if-converted method. For the three and nine months ended September 30, 2021, excluded from the calculation of diluted earnings per share was the effect of adding back $2.4 million and $8.0 million of interest expense and 2,271,773 and 3,578,544 weighted average common share equivalents, respectively, related to the assumed conversion of the Company’s convertible senior notes due 2022, as their inclusion would have been antidilutive. For the three and nine months ended September 30, 2021, only the 2022 notes were excluded from the calculation of diluted earnings per share, and the assumed conversion of the Company’s 2026 notes was included in the calculation of diluted earnings per share under the if-converted method.