Earnings Per Share

We have shares of restricted stock issued and outstanding that are currently unvested. Holders of shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our unrestricted common stock and the shares of restricted stock 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. For periods in which we have a net loss we do not use the two class method as holders of our restricted shares are not obligated to share in such losses.

The presentation of basic EPS amounts on the face of the accompanying condensed consolidated statements of operations is computed by dividing net income or loss by the weighted average shares of our common stock outstanding. 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 for the three-month periods ended September 30, 2017 and 2016 are as follows (in thousands):



	Three Months Ended September 30, 2017				Three Months Ended September 30, 2016
	Income			Shares	Income			Shares
Basic:
Net income	$	2,290			$	11,462
Less: Undistributed earnings allocated to participating securities	(27		)		(160		)
Undistributed earnings allocated to common shares	$	2,263		145,958	$	11,302		113,680

Diluted:
Undistributed earnings allocated to common shares	$	2,263		145,958	$	11,302		113,680
Effect of dilutive securities:
Share-based awards other than participating securities	—			—	—			—
Undistributed earnings reallocated to participating securities	—			—	—			—
Net income	$	2,263		145,958	$	11,302		113,680

We had net losses for the nine-month periods ended September 30, 2017 and 2016. Accordingly, our diluted EPS calculation for these periods was equivalent to our basic EPS calculation since diluted EPS excluded any assumed exercise or conversion of common stock equivalents. These common stock equivalents were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable periods. Shares that otherwise would have been included in the diluted per share calculations assuming we had earnings are as follows (in thousands):



	Nine Months Ended September 30,
	2017	2016

Diluted shares (as reported)	145,057	109,135
Share-based awards	364	308
Total	145,421	109,443

In addition, the following potentially dilutive shares related to the 2022 Notes and the 2032 Notes were excluded from the diluted EPS calculation because we have the right and the intention to settle any such future conversions in cash (Note 6) (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016

2022 Notes	8,997	—	8,997	—
2032 Notes	2,403	7,493	2,403	7,814