Net income per share

6 Months Ended

Jun. 30, 2017

Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]

Note 12. Earnings per share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s unvested share-based awards qualify as participating securities.

The Company’s basic earnings per share attributable to common stockholders is computed as (i) net income (loss) as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The following table reconciles the Company’s earnings from operations and earnings attributable to common stockholders to the basic and diluted earnings used to determine the Company’s earnings per share amounts for the three and six months ended June 30, 2017 and 2016, respectively, under the two-class method:


				Three Months Ended				Six Months Ended
			June 30,				June 30,
(in millions)			2017		2016		2017		2016

Net income (loss) as reported			$	152	$	(266)	$	802	$	(1,286)
Participating basic earnings (a)				(1)		-		(6)		-
	Basic earnings attributable to common stockholders			151		(266)		796		(1,286)
Reallocation of participating earnings				-		-		-		-
	Diluted earnings attributable to common stockholders		$	151	$	(266)	$	796	$	(1,286)


(a)		Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so.

The following table is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three and six months ended June 30, 2017 and 2016:


			Three Months Ended		Six Months Ended
			June 30,		June 30,
(in thousands)			2017	2016	2017	2016

Weighted average common shares outstanding:
	Basic		147,304	130,400	147,071	129,398
		Dilutive common stock options	-	-	6	-
		Dilutive performance units	462	-	581	-
	Diluted		147,766	130,400	147,658	129,398

The following table is a summary of the performance units that were not included in the computation of diluted earnings per share, as inclusion of these items would be antidilutive:



		Three Months Ended		Six Months Ended
		June 30,		June 30,
(in thousands)		2017	2016	2017	2016

Number of antidilutive units:
	Antidilutive performance units	107	-	108	-

Performance unit awards. The number of shares of common stock that will ultimately be issued for performance units will be determined by a combination of (i) comparing the Company’s total shareholder return relative to the total shareholder return of a predetermined group of peer companies at the end of the performance period and (ii) the Company’s absolute total shareholder return at the end of the performance period. The performance period is 36 months. The actual payout of shares will be between zero and 300 percent.