Earnings Per Share

9 Months Ended

Sep. 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 September 30, 2015				Three Months Ended September 30, 2014
	Income			Shares	Income			Shares
Basic:
Net income applicable to common shareholders	$	9,880			$	75,586
Less: Undistributed income allocated to participating securities	(52		)		(392		)
Undistributed income allocated to common shares	$	9,828		105,438	$	75,194		104,997

Diluted:
Undistributed income allocated to common shares	$	9,828		105,438	$	75,194		104,997
Effect of dilutive securities:
Share-based awards other than participating securities	—			—	—			341
Undistributed income reallocated to participating securities	—			—	1			—
Net income applicable to common shareholders	$	9,828		105,438	$	75,195		105,338



	Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
	Income			Shares	Income			Shares
Basic:
Net income applicable to common shareholders	$	26,887			$	187,087
Less undistributed income allocated to participating securities	(149		)		(980		)
Undistributed income allocated to common shares	$	26,738		105,362	$	186,107		105,038

Diluted:
Undistributed income allocated to common shares	$	26,738		105,362	$	186,107		105,038
Effect of dilutive securities:
Share-based awards other than participating securities	—			—	—			336
Undistributed income reallocated to participating securities	—			—	3			—
Net income applicable to common shareholders	$	26,738		105,362	$	186,110		105,374

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