Earnings Per Share

3 Months Ended

Mar. 31, 2022

Note 11. 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 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 8) is calculated using the treasury-stock method. During the three months ended March 31, 2022 and 2021, 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 March 31,
(Thousands, except per share data)	2022			2021
Basic earnings per share:
Numerator:
Net income (loss) attributable to shareholders	$	52,730		$	(4,438	)
Less: Income allocated to participating securities		(331	)		(248	)
Dividends declared on convertible preferred stock		(5	)		(3	)
Net income (loss) attributable to common shares	$	52,394		$	(4,689	)
Denominator:
Basic weighted-average common shares outstanding		235,046			231,469
Basic earnings (loss) per common share	$	0.22		$	(0.02	)

	Three Months Ended March 31,
(Thousands, except per share data)	2022			2021
Diluted earnings per share:
Numerator:
Net income (loss) attributable to shareholders	$	52,730		$	(4,438	)
Less: Income allocated to participating securities		(331	)		(248	)
Dividends declared on convertible preferred stock		(5	)		(3	)
Impact on if-converted dilutive securities		2,994			-
Net income (loss) attributable to common shares	$	55,388		$	(4,689	)
Denominator:
Basic weighted-average common shares outstanding		235,046			231,469
Effect of dilutive non-participating securities		1,226			-
Impact on if-converted dilutive securities		31,032			-
Weighted-average shares for dilutive earnings per common share		267,304			231,469
Dilutive earnings (loss) per common share	$	0.21		$	(0.02	)

For the three months ended March 31, 2021, 30,052,433 potential common shares related to the Exchangeable Notes and 762,355 non-participating securities were excluded from the computation of earnings per share, as their effect would have been anti-dilutive.