Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. We calculate diluted EPS using the treasury stock method and if-converted method. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our convertible debt instruments result in the issuance of common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. During the quarter ended March 31, 2018, we had 9% Debentures outstanding that could result in potentially issuable shares. For purposes of calculating basic and diluted EPS, vested restricted stock and restricted stock units ("RSUs") are considered outstanding.

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.



	Table	6.1
Earnings per share			Three Months Ended March 31,
	(In thousands, except per share data)		2018		2017
	Basic earnings per share:
	Net income		$	143,637	$	89,798
	Weighted average common shares outstanding - basic		370,908		341,009
	Basic earnings per share		$	0.39	$	0.26

	Diluted earnings per share:
	Net income		$	143,637	$	89,798
	Interest expense, net of tax ⁽¹⁾:
	2% Notes		—		823
	5% Notes		—		1,282
	9% Debentures		4,566		3,757
	Diluted income available to common shareholders		$	148,203	$	95,660

	Weighted average common shares outstanding - basic		370,908		341,009
	Effect of dilutive securities:
	Unvested RSUs		1,626		1,488
	2% Notes		—		29,859
	5% Notes		—		10,791
	9% Debentures		19,028		19,028
	Weighted average common shares outstanding - diluted		391,562		402,175
	Diluted earnings per share		$	0.38	$	0.24


⁽¹⁾	The three months ended March 31, 2018 and 2017 were tax effected at a rate of 21% and 35%, respectively.