Earnings Per Share

12 Months Ended

Dec. 31, 2016

Note 12. Earnings Per Share

Our restricted stock awards are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as common stock. As participating securities, we included these instruments in the computation of earnings per share under the two-class method described in FASB ASC 260, Earnings per Share.

We also issue PSUs; however these units contain forfeitable rights to receive dividends and are therefore considered non-participating restrictive shares and are not dilutive under the two-class method until performance conditions are met. During the year ended December 31, 2016, approximately 220,000 PSUs were excluded from the computation of diluted net loss per share because their effect is anti-dilutive as a result of our net loss for this period. For the period from April 24, 2015 through December 31, 2015, approximately 61,000 PSUs were excluded from the computation of diluted earnings per share as their performance conditions had not been met.

The earnings per share impact of the Series A Shares (See Note 17) is calculated using the net share settlement method, whereby the redemption value of the instrument is assumed to be settled in cash and only the conversion premium, if any, is assumed to be settled in shares. The Series A Shares provide CS&L the option to cash or share settle the instrument, and it is our policy to settle the instrument in cash upon conversion.

The following sets forth the computation of basic and diluted earnings per share under the two-class method:

(Thousands, except per share data)	Year Ended December 31, 2016			Period from April 24 - December 31, 2015
Basic earnings per share:
Numerator:
Net (loss) income	$	(212	)	$	24,870
Less: Income allocated to participating securities		(1,557	)		(1,152	)
Dividends declared on convertible preferred stock		(1,743	)		-
Amortization of discount on convertible preferred stock		(1,985	)		-
Net (loss) income applicable to common shares	$	(5,497	)	$	23,718
Denominator:
Basic weighted-average common shares outstanding		152,473			149,835
Basic (loss) earnings per common share	$	(0.04	)	$	0.16

(Thousands, except per share data)	Year Ended December 31, 2016			Period from April 24 - December 31, 2015
Diluted earnings per share:
Numerator:
Net (loss) income	$	(212	)	$	24,870
Less: Income allocated to participating securities		(1,557	)		(1,152	)
Dividends declared on convertible preferred stock		(1,743	)		-
Amortization of discount on convertible preferred stock		(1,985	)		-
Net (loss) income applicable to common shares	$	(5,497	)	$	23,718
Denominator:
Basic weighted-average common shares outstanding		152,473			149,835
Effect of dilutive non-participating securities		—			—
Weighted-average shares for dilutive earnings per common share		152,473			149,835
Dilutive (loss) earnings per common share	$	(0.04	)	$	0.16