Earnings Per Share

9 Months Ended

Sep. 30, 2020

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 basic and diluted 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 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, 2020					Three Months Ended September 30, 2019
	Income		Shares	Income		Shares
Basic:
Net income attributable to common shareholders	$	24,499		$	31,695
Less: Undistributed earnings allocated to participating securities	(180)			(261)
Accretion of redeemable noncontrolling interests	(128)			(25)
Net income available to common shareholders, basic	$	24,191	149,032	$	31,409	147,575


Diluted:
Net income available to common shareholders, basic	$	24,191	149,032	$	31,409	147,575
Effect of dilutive securities:
Share-based awards other than participating securities	—		919	—		779
Undistributed earnings reallocated to participating securities	2		—	1		—
Net income available to common shareholders, diluted	$	24,193	149,951	$	31,410	148,354



	Nine Months Ended September 30, 2020					Nine Months Ended September 30, 2019
	Income		Shares	Income		Shares
Basic:
Net income attributable to common shareholders	$	18,011		$	49,867
Less: Undistributed earnings allocated to participating securities	(117)			(435)
Accretion of redeemable noncontrolling interests	(2,283)			(43)
Net income available to common shareholders, basic	$	15,611	148,956	$	49,389	147,506


Diluted:
Net income available to common shareholders, basic	$	15,611	148,956	$	49,389	147,506
Effect of dilutive securities:
Share-based awards other than participating securities	—		868	—		580
Undistributed earnings reallocated to participating securities	1		—	2		—
Net income available to common shareholders, diluted	$	15,612	149,824	$	49,391	148,086

The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2026 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,
	2020	2019	2020	2019

2022 Notes	5,688	8,997	7,886	8,997
2023 Notes	8,076	13,202	11,481	13,202
2026 Notes	14,650	—	4,919	—