(4) Earnings (Loss) 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 shareholders) when their impact on net income available to common shareholders is anti-dilutive.

For the year ended December 31, 2017, the Company incurred a net loss, and accordingly, excluded all potentially dilutive securities from the calculation of diluted (loss) earnings per share as their impact on the net loss available to common shareholders was anti-dilutive. Potentially dilutive securities for the years ended December 31, 2017, 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. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s Convertible Notes were excluded from diluted shares outstanding because the exercise price exceeded the average market price of the Company’s common shares in the periods presented. The effect of the note hedge the Company purchased to offset the underlying conversion option embedded in its Convertible Notes was also excluded, as the effect is anti-dilutive.

Additionally, the restricted shares 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 years ended December 31, 2016 and 2015 among the Company’s outstanding common shares and issued but unvested restricted shares. For December 31, 2017, the undistributed loss was not allocated to the vested restricted shares as they do not carry an obligation to share in losses.

Accordingly, the allocated details are as follows:

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


	2017
	Loss		Weighted Average Shares Outstanding	Loss per Share
Basic:
Net (loss) attributable to controlling interests and available to common shareholders	$	(145,350)
Less: Undistributed earnings allocated to unvested RSAs		—
Net (loss) available to common shareholders	$	(145,350)	45,619,679	$	(3.19)

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	—
Stock options added to the denominator under the treasury stock method			—
RSUs added to the denominator under the treasury stock method			—
Less: Undistributed earnings reallocated to RSAs		—
Net (loss) available to common shareholders and assumed conversions	$	(145,350)	45,619,679	$	(3.19)


	2016					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 shareholders	$	87,991				$	67,080
Less: Undistributed earnings allocated to unvested RSAs		(42)					(94)
Net income available to common shareholders	$	87,949	45,206,119	$	1.95	$	66,986	44,796,701	$	1.50

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	42				$	94
Stock options added to the denominator under the treasury stock method			24,509					63,657
RSUs added to the denominator under the treasury stock method			590,899					508,329
Less: Undistributed earnings reallocated to RSAs		(41)					(93)
Net income available to common shareholders and assumed conversions	$	87,950	45,821,527	$	1.92	$	66,987	45,368,687	$	1.48

Potentially dilutive common shares related to restricted shares issued by the Company under RSAs were 2,821 for December 31, 2017. The computation of diluted earnings per share excluded potentially dilutive common shares related to restricted shares issued by the Company under RSAs of 12,316, and 31,005 shares for the years ended December 31, 2016 and 2015, respectively, because the effect of including these shares in the computation would have been anti-dilutive.