EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested time-based restricted stock awards with non-forfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses.

At December 31, 2014, we had 846,000 stock options outstanding which were not included in the computation of diluted earnings per share, as the effect would have been anti-dilutive. All outstanding stock options were included in the computation of diluted earnings per share for the years ended December 31, 2016 and 2015 due to their dilutive effect. The Common Units held by the non-controlling interest holders have been excluded from the denominator of the diluted earnings per share as there would be no effect on the amounts since the limited partners' share of income would also be added to derive net income attributable to common stockholders. For the years ended December 31, 2016, 2015, and 2014, we had unvested performance-based restricted stock awards of 409,068 shares, 194,463 shares and 256,373 shares, respectively, which were excluded from the denominator of the diluted earnings per share as the awards had not achieved the requisite performance conditions for vesting at each period end.

Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts):



	2016			2015			2014
Numerator:
Income from continuing operations	$	108,261		$	125,256		$	20,431
Less: Preferred dividends	(18,232		)	(16,588		)	(16,588		)
Premium on redemption of Series A Preferred Stock	(2,125		)	—			—
Allocation to participating securities	(342		)	(118		)	(94		)
Attributable to non-controlling interest	(456		)	(819		)	(46		)
Income from continuing operations attributable to common stockholders	87,106			107,731			3,703
Income from discontinued operations attributable to common stockholders	—			—			486
Net income attributable to common stockholders, net of amount allocated to participating securities	$	87,106		$	107,731		$	4,189

Denominator:
Weighted average common shares outstanding - basic	86,874			85,920			85,242
Dilutive effect of equity-based compensation awards	469			1,224			324
Weighted average common shares outstanding - diluted	87,343			87,144			85,566

Earnings per common share - basic:
Net income from continuing operations	$	1.00		$	1.25		$	0.04
Net income from discontinued operations	—			—			0.01
Net income per common share	$	1.00		$	1.25		$	0.05
Earnings per common share - diluted:
Net income from continuing operations	$	1.00		$	1.24		$	0.04
Net income from discontinued operations	—			—			0.01
Net income per common share	$	1.00		$	1.24		$	0.05