Earnings Per Share

6 Months Ended

Jun. 30, 2015

We have shares of restricted stock issued and outstanding, which currently are unvested. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding unrestricted common stock and the shares are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share (“EPS”) amounts under the two class method in periods in which we have earnings from continuing operations.

The presentation of basic EPS amounts on the face of the accompanying condensed consolidated statements of operations is computed by dividing the net income applicable to our common shareholders by the weighted average shares of our outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. The computations of the numerator (income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands):



	Three Months Ended June 30, 2015				Three Months Ended June 30, 2014
	Income			Shares	Income			Shares
Basic:
Net income (loss) applicable to common shareholders	$	(2,635	)		$	57,782
Less: Undistributed income allocated to participating securities	—				(300		)
Undistributed income (loss) allocated to common shares	$	(2,635	)	105,357	$	57,482		104,992

Diluted:
Undistributed income (loss) allocated to common shares	$	(2,635	)	105,357	$	57,482		104,992
Effect of dilutive securities:
Share-based awards other than participating securities	—			—	—			303
Undistributed income reallocated to participating securities	—			—	1			—
Net income (loss) applicable to common shareholders	$	(2,635	)	105,357	$	57,483		105,295



	Six Months Ended June 30, 2015				Six Months Ended June 30, 2014
	Income			Shares	Income			Shares
Basic:
Net income applicable to common shareholders	$	17,007			$	111,501
Less undistributed income allocated to participating securities	(96		)		(586		)
Undistributed income allocated to common shares	$	16,911		105,324	$	110,915		105,059

Diluted:
Undistributed income allocated to common shares	$	16,911		105,324	$	110,915		105,059
Effect of dilutive securities:
Share-based awards other than participating securities	—			—	—			300
Undistributed income reallocated to participating securities	—			—	2			—
Net income applicable to common shareholders	$	16,911		105,324	$	110,917		105,359

Approximately 8.0 million of potentially dilutive shares related to the 2032 Notes were excluded from the diluted EPS calculation for the three- and six-month periods ended June 30, 2015 and 2014 because we have the right, intention and ability to settle any such future conversions in cash (Note 6).