(4) Earnings per Share

The Company reports its earnings per share under the two-class method. Under this method, potentially dilutive securities are excluded from the calculation of diluted earnings per share (as well as their related impact on the net income available to common stockholders) when their impact on net income available to common stockholders is anti-dilutive. Potentially dilutive securities for the three and six months ended June 30, 2016 and 2015 included all outstanding stock options, RSAs, and RSUs, which were included in the calculation of diluted earnings per share for these periods, if dilutive. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s $287.5 million of 1.00% Convertible Senior Notes due 2020 (the “Convertible Notes”) were excluded from diluted shares outstanding because the exercise price exceeded the average market price of the Company’s common stock. The effect of the note hedge the Company purchased to offset the underlying conversion option embedded in the Convertible Notes was also excluded, as the effect is anti-dilutive.

Additionally, the shares of restricted stock issued by the Company under RSAs have a non-forfeitable right to cash dividends, if and when declared by the Company. Accordingly, restricted shares issued under RSAs are considered to be participating securities and, as such, the Company has allocated the undistributed earnings for the three and six months ended June 30, 2016 and 2015 among the Company’s outstanding shares of common stock and issued but unvested restricted shares, as follows:

Earnings per Share (in thousands, excluding share and per share amounts):


	Three Months Ended					Three Months Ended
	June 30, 2016					June 30, 2015
	Income		Weighted Average Shares Outstanding	Earnings Per Share		Income		Weighted Average Shares Outstanding	Earnings Per Share
Basic:
Net income attributable to controlling interests and available to common stockholders	$	20,148				$	14,997
Less: Undistributed earnings allocated to unvested RSAs		(10)					(23)
Net income available to common stockholders	$	20,138	45,199,450		0.45	$	14,974	44,807,829	$	0.33

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	10				$	23
Stock options added to the denominator under the treasury stock method			32,289					64,511
RSUs added to the denominator under the treasury stock method			516,831					447,023
Less: Undistributed earnings reallocated to RSAs		(10)					(23)
Net income available to common stockholders and assumed conversions	$	20,138	45,748,570		0.44	$	14,974	45,319,363	$	0.33


	Six Months Ended					Six Months Ended
	June 30, 2016					June 30, 2015
	Income		Weighted Average Shares Outstanding	Earnings Per Share		Income		Weighted Average Shares Outstanding	Earnings Per Share
Basic:
Net income attributable to controlling interests and available to common stockholders	$	35,532				$	30,230
Less: Undistributed earnings allocated to unvested RSAs		(23)					(50)
Net income available to common stockholders	$	35,509	45,136,553	$	0.79	$	30,180	44,737,413	$	0.67

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	23				$	50
Stock options added to the denominator under the treasury stock method			33,073					71,750
RSUs added to the denominator under the treasury stock method			534,848					471,425
Less: Undistributed earnings reallocated to RSAs		(22)					(49)
Net income available to common stockholders and assumed conversions	$	35,510	45,704,474	$	0.78	$	30,181	45,280,588	$	0.67

The computation of diluted earnings per share excluded potentially dilutive common shares related to restricted stock issued by the Company under RSAs of 11,456 and 14,828 shares for the three and six months ended June 30, 2016, respectively, and 33,694 and 33,911 for the three and six months ended June 30, 2015, respectively, because the effect of including these shares in the computation would have been anti-dilutive.