Earnings Per Share

3 Months Ended

Mar. 31, 2020

The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three months ended March 31, 2020 and 2019 (amounts in thousands except per share information):



	Three Months Ended March 31, 2020
	Income (numerator)			Shares (denominator)	Per Share Amount
Basic EPS:
Net income	$	37,118
Less: preferred dividend requirements	(6,034		)
Net income available to common shareholders	$	31,084		78,467	$	0.40
Diluted EPS:
Net income available to common shareholders	$	31,084		78,467
Effect of dilutive securities:
Share options	—			9
Net income available to common shareholders	$	31,084		78,476	$	0.40



	Three Months Ended March 31, 2019
	Income (numerator)			Shares (denominator)	Per Share Amount
Basic EPS:
Income from continuing operations	$	48,464
Less: preferred dividend requirements	(6,034		)
Income from continuing operations available to common shareholders	$	42,430		74,679	$	0.57
Income from discontinued operations available to common shareholders	$	16,885		74,679	$	0.22
Net income available to common shareholders	$	59,315		74,679	$	0.79
Diluted EPS:
Income from continuing operations available to common shareholders	$	42,430		74,679
Effect of dilutive securities:
Share options	—			46
Income from continuing operations available to common shareholders	$	42,430		74,725	$	0.57
Income from discontinued operations available to common shareholders	$	16,885		74,725	$	0.22
Net income available to common shareholders	$	59,315		74,725	$	0.79

The additional 2.2 million and 2.1 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares for the three months ended March 31, 2020 and 2019, respectively, and the additional 1.7 million and 1.6 million common shares that would result from the conversion of the Company’s 9.0% Series E cumulative convertible preferred shares for the three months ended March 31, 2020 and 2019, respectively, and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted earnings per share because the effect is anti-dilutive.

The dilutive effect of potential common shares from the exercise of share options is included in diluted earnings per share for the periods presented. Options to purchase 62 thousand and 4 thousand common shares at per share prices ranging from $56.94 to $76.63 and $73.84 to $76.63 were outstanding for the three months ended March 31, 2020 and 2019, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive.

The dilutive effect of the potential common shares from the performance shares is included in diluted earnings per share upon the satisfaction of certain performance and market conditions. These conditions are evaluated at each reporting period and if the conditions have been satisfied during the reporting period, the number of contingently issuable shares are included in the computation of diluted earnings per share. During the three months ended March 31, 2020, the Company determined the performance and market conditions were not met, therefore, none of the 62 thousand contingently issuable performance shares were included in the computation of diluted earnings per share.