Earnings Per Share

9 Months Ended

Sep. 30, 2022

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 and nine months ended September 30, 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 September 30,				Nine Months Ended September 30,
(Thousands, except per share data)	2022		2021		2022		2021
Basic earnings per share:
Numerator:
Net (loss) income attributable to shareholders	$	(155,679)	$	43,366	$	(49,252)	$	87,835
Less: Income allocated to participating securities	(226)		(283)		(897)		(864)
Dividends declared on convertible preferred stock	(5)		(3)		(15)		(8)
Net (loss) income attributable to common shares	$	(155,910)	$	43,080	$	(50,164)	$	86,963
Denominator:
Basic weighted-average common shares outstanding	235,739		233,513		235,483		232,269
Basic (loss) earnings per common share	$	(0.66)	$	0.18	$	(0.21)	$	0.37


	Three Months Ended September 30,				Nine Months Ended September 30,
(Thousands, except per share data)	2022		2021		2022		2021
Diluted earnings per share:
Numerator:
Net (loss) income attributable to shareholders	$	(155,679)	$	43,366	$	(49,252)	$	87,835
Less: Income allocated to participating securities	(226)		(283)		(897)		(864)
Dividends declared on convertible preferred stock	(5)		(3)		(15)		(8)
Impact on if-converted dilutive securities	—		2,984		—		—
Net (loss) income attributable to common shares	$	(155,910)	$	46,064	$	(50,164)	$	86,963
Denominator:
Basic weighted-average common shares outstanding	235,739		233,513		235,483		232,269
Effect of dilutive non-participating securities	—		338		—		271
Impact on if-converted dilutive securities	—		30,570		—		—
Weighted-average shares for dilutive earnings per common share	235,739		264,421		235,483		232,540
Dilutive (loss) earnings per common share	$	(0.66)	$	0.17	$	(0.21)	$	0.37

For the three and nine months ended September 30, 2022, 847,147 non-participating securities were excluded from the computation of earnings per share, as their effect would have been anti-dilutive. For the three and nine months ended September 30, 2022, 31,691,390 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 nine months ended September 30, 2021, 30,569,588 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.