(7) INCOME (LOSS) PER COMMON SHARE

Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common shareholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following tables set forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands except per share amounts):

		Three Months Ended June 30,						Six Months Ended June 30,
		2017			2016			2017			2016
Net income (loss), as reported	$	69,550		$	(224,936	)	$	239,661		$	(318,708	)
Participating earnings ^(a)		(751	)		(56	)		(2,619	)		(111	)
Basic net income (loss) attributed to common shareholders		68,799			(224,992	)		237,042			(318,819	)
Reallocation of participating earnings ^(a)		—			—			3			—
Diluted net income (loss) attributed to common shareholders	$	68,799		$	(224,992	)	$	237,045		$	(318,819	)
Net income (loss) per common share:
Basic	$	0.28		$	(1.35	)	$	0.97		$	(1.91	)
Diluted	$	0.28		$	(1.35	)	$	0.97		$	(1.91	)

^(a)

Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses.

The following table provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Weighted average common shares outstanding – basic ⁽¹⁾	245,177	167,126	244,916	166,964
Effect of dilutive securities:
Director and employee PSUs and RSUs	158	—	326	—
Weighted average common shares outstanding – diluted	245,335	167,126	245,242	166,964

⁽¹⁾ 2017 includes common stock issued in connection with the exchange of 77.0 million shares for all outstanding Memorial common stock on September 16, 2016.

Weighted average common shares outstanding–basic for second quarter 2017 excludes 2.7 million shares of restricted stock held in our deferred compensation plan compared to 2.8 million shares in second quarter 2016 (although all awards are issued and outstanding upon grant). Weighted average common shares outstanding-basic for first six months 2017 excludes 2.7 million shares of restricted stock compared to 2.8 million shares for first six months 2016. For second quarter 2017, stock appreciation rights (“SARs”) of 652,000 were outstanding but not included in the computation of diluted net income per share because the grant prices of the SARs were greater than the average market price of the common shares and would be anti-dilutive to the computations. For first six months 2017, SARs of 797,000 were outstanding but not included in the computation of diluted net income per share because the grant prices of the SARs were greater than the average market price of the common shares and would be anti-dilutive to the computations. In addition, there were 1,265,000 shares of equity awards for the second quarter 2017 and 404,000 shares of equity awards for the first six months 2017 excluded from the computation of diluted net income per share because their effect would have been antidilutive. Due to our net loss from operations for the three months and the six months ended June 30, 2016, we excluded all outstanding SARs, restricted stock and performance shares from the computation of diluted net loss per share because the effect would have been anti-dilutive.