Earnings Per Share

9 Months Ended

Sep. 30, 2019

Note 10 — Earnings Per Share

We have shares of restricted stock issued and outstanding that are currently unvested. Shares of restricted stock are considered participating securities because holders of shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our unrestricted common stock. We are required to compute earnings per share (“EPS”) under the two-class method in periods in which we have earnings. Under the two-class method, the undistributed earnings for each period are allocated based on the participation rights of both common shareholders and the 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. 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 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 that for basic EPS, except that the denominator includes dilutive common stock equivalents and the numerator excludes the effects 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, 2019				Three Months Ended September 30, 2018
	Income			Shares	Income			Shares
Basic:
Net income attributable to common shareholders	$	31,695			$	27,121
Less: Undistributed earnings allocated to participating securities	(261		)		(260		)
Accretion of redeemable noncontrolling interests	(25		)		—
Net income available to common shareholders, basic	$	31,409		147,575	$	26,861		146,700


Diluted:
Net income available to common shareholders, basic	$	31,409		147,575	$	26,861		146,700
Effect of dilutive securities:
Share-based awards other than participating securities	—			779	—			264
Undistributed earnings reallocated to participating securities	1			—	—			—
Net income available to common shareholders, diluted	$	31,410		148,354	$	26,861		146,964



	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
	Income			Shares	Income			Shares
Basic:
Net income attributable to common shareholders	$	49,867			$	42,345
Less: Undistributed earnings allocated to participating securities	(435		)		(407		)
Accretion of redeemable noncontrolling interests	(43		)		—
Net income available to common shareholders, basic	$	49,389		147,506	$	41,938		146,679


Diluted:
Net income available to common shareholders, basic	$	49,389		147,506	$	41,938		146,679
Effect of dilutive securities:
Share-based awards other than participating securities	—			580	—			82
Undistributed earnings reallocated to participating securities	2			—	—			—
Net income available to common shareholders, diluted	$	49,391		148,086	$	41,938		146,761

The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2032 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018

2022 Notes	8,997	8,997	8,997	8,997
2023 Notes	13,202	13,202	13,202	9,381
2032 Notes ⁽¹⁾	—	—	—	701

(1)

The 2032 Notes were fully redeemed in May 2018.