Earnings Per Share

6 Months Ended

Jun. 30, 2021

Note 12. Earnings Per Share

Our time-based 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 (“ASC 260”).

We also have outstanding performance-based restricted stock units that contain forfeitable rights to receive dividends. Therefore, the awards are considered non-participating restrictive shares and are not dilutive under the two-class method until performance conditions are met.

The dilutive effect of the Exchangeable Notes (see Note 11) is calculated by using the “if-converted” method. This assumes an add-back of interest, net of income taxes, to net income attributable to shareholders as if the securities were converted at the beginning of the reporting period (or at time of issuance, if later) and the resulting common shares included in number of weighted average shares. The dilutive effect of the Warrants (see Note 9) is calculated using the treasury-stock method. During the three and six months ended June 30, 2021 and 2020, the Warrants were excluded from diluted shares outstanding because the exercise price exceeded the average market price of our common stock for the reporting period.

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

	Three Months Ended June 30,						Six Months Ended June 30,
(Thousands, except per share data)	2021			2020			2021			2020
Basic earnings per share:
Numerator:
Net income (loss) attributable to shareholders	$	48,907		$	(587,744	)	$	44,469		$	(666,597	)
Less: Income allocated to participating securities		(333	)		(424	)		(581	)		(624	)
Dividends declared on convertible preferred stock		(2	)		(1	)		(5	)		(4	)
Net income (loss) attributable to common shares	$	48,572		$	(588,169	)	$	43,883		$	(667,225	)
Denominator:
Basic weighted-average common shares outstanding		231,801			192,479			231,636			192,358
Basic earnings (loss) per common share	$	0.21		$	(3.06	)	$	0.19		$	(3.47	)

	Three Months Ended June 30,						Six Months Ended June 30,
(Thousands, except per share data)	2021			2020			2021			2020
Diluted earnings per share:
Numerator:
Net income (loss) attributable to shareholders	$	48,907		$	(587,744	)	$	44,469		$	(666,597	)
Less: Income allocated to participating securities		(333	)		(424	)		(581	)		(624	)
Dividends declared on convertible preferred stock		(2	)		(1	)		(5	)		(4	)
Impact on if-converted dilutive securities		2,974			-			-			-
Net income (loss) attributable to common shares	$	51,546		$	(588,169	)	$	43,883		$	(667,225	)
Denominator:
Basic weighted-average common shares outstanding		231,801			192,479			231,636			192,358
Effect of dilutive non-participating securities		135			-			226			-
Impact on if-converted dilutive securities		30,332			-			-			-
Weighted-average shares for dilutive earnings per common share		262,268			192,479			231,862			192,358
Dilutive earnings (loss) per common share	$	0.20		$	(3.06	)	$	0.19		$	(3.47	)

For the six months ended June 30, 2021, 30,332,262 potential common shares related to the Exchangeable Notes were excluded from the computation of earnings per share, as their effect would have been anti-dilutive. For the three and six months ended June 30, 2020, 29,198,385 potential common shares related to the Exchangeable Notes and 730,863 non-participating securities were excluded from the computation of earnings per share, as their effect would have been anti-dilutive.