Note 12 Earnings (Losses) Per Share

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have nonforfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings (losses) per share. We have granted and expect to continue to grant to employees restricted stock grants that contain nonforfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings (losses) per share and calculate basic earnings (losses) per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Basic earnings (losses) per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings (losses) per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and unvested restricted stock.

A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands, except per share amounts)
BASIC EPS:

Net income (loss) (numerator):
Income (loss) from continuing operations, net of tax	$	(41,890	)	$	65,729		$	82,472		$	114,706
Less: net (income) loss attributable to noncontrolling interest	44			(253		)	133			(826		)
Less: loss on redemption of subsidiary preferred stock	—			(1,688		)	—			(1,688		)
Less: (earnings) losses allocated to unvested shareholders	720			(974		)	(1,311		)	(1,707		)

Numerator for basic earnings per share:
Adjusted income (loss) from continuing operations	$	(41,126	)	$	62,814		$	81,294		$	110,485

Income (loss) from discontinued operations	$	5,025		$	(1,032	)	$	4,208		$	483


Weighted-average number of shares outstanding - basic	286,085			297,984			285,723			297,097

Earnings (losses) per share:
Basic from continuing operations	$	(0.14	)	$	0.21		$	0.28		$	0.37
Basic from discontinued operations	0.01			—			0.02			—

Total Basic	$	(0.13	)	$	0.21		$	0.30		$	0.37


DILUTED EPS:

Income (loss) from continuing operations attributed to common shareholders	$	(41,126	)	$	62,814		$	81,294		$	110,485
Add: effect of reallocating undistributed earnings of unvested shareholders	—			—			5			—

Adjusted income (loss) from continuing operations attributed to common shareholders	$	(41,126	)	$	62,814		$	81,299		$	110,485
Income (loss) from discontinued operations	$	5,025		$	(1,032	)	$	4,208		$	483

Weighted-average number of shares outstanding - basic	286,085			297,984			285,723			297,097
Add: dilutive effect of potential common shares	—			2,997			978			2,919

Weighted-average number of diluted shares outstanding	286,085			300,981			286,701			300,016

Earnings (losses) per share:
Diluted from continuing operations	$	(0.14	)	$	0.21		$	0.28		$	0.37
Diluted from discontinued operations	0.01			—			0.02			—

Total Diluted	$	(0.13	)	$	0.21		$	0.30		$	0.37

For all periods presented, the computation of diluted earnings (losses) per share excludes outstanding stock options with exercise prices greater than the average market price of our common shares, because their inclusion would be anti-dilutive and because they are not considered participating securities. The average number of options that were excluded from diluted earnings (losses) per share that would potentially dilute earnings (losses) per share were 9,860,422 and 5,782,273 shares during the three months ended June 30, 2015 and 2014, respectively, and 6,325,598 and 6,817,891 shares during the six months ended June 30, 2015 and 2014, respectively. In any period during which the average market price of our common shares exceeds the exercise prices of these stock options, such stock options will be included in our diluted earnings (losses) per share computation using the if-converted method of accounting.