(6) 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.

Potentially dilutive securities for the three and nine months ended September 30, 2018 and 2017 included all outstanding stock options, RSA, 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 $287.5 million of 1.00% Convertible Senior Notes due 2020 (the “Convertible Notes”) were excluded from diluted shares outstanding as the exercise price exceeded the average market price of the Company’s common shares. The effect of the note hedge, described in Note 10. Long-Term Debt, 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. The undistributed losses for the three and nine months ended September 30, 2017 have not been allocated to the unvested restricted shares as they do not carry an obligation to share in losses. For the three and nine months ended September 30, 2018, there were no unvested RSAs. The allocated details are as follows:

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



	Three Months Ended					Three Months Ended
	September 30, 2018					September 30, 2017
	Income		Weighted Average Shares Outstanding	Income per Share		Loss		Weighted Average Shares Outstanding	Loss per Share
Basic:
Net income (loss) attributable to controlling interests and available to common shareholders	$	8,781				$	(175,561)
Less: Undistributed earnings allocated to unvested RSAs		—					—
Net income (loss) available to common shareholders	$	8,781	46,073,739	$	0.19	$	(175,561)	45,662,543	$	(3.84)

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	—				$	—
Stock options added to the denominator under the treasury stock method			9,894					—
RSUs added to the denominator under the treasury stock method			393,154					—
Less: Undistributed earnings reallocated to RSAs		—					—
Net income (loss) available to common shareholders and assumed conversions	$	8,781	46,476,787	$	0.19	$	(175,561)	45,662,543	$	(3.84)


	Nine Months Ended					Nine Months Ended
	September 30, 2018					September 30, 2017
	Income		Weighted Average Shares Outstanding	Income per Share		Loss		Weighted Average Shares Outstanding	Loss per Share
Basic:
Net income (loss) attributable to controlling interests and available to common shareholders	$	9,780				$	(161,304)
Less: Undistributed earnings allocated to unvested RSAs		—					—
Net income (loss) available to common shareholders	$	9,780	45,945,728	$	0.21	$	(161,304)	45,597,558	$	(3.54)

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	—				$	—
Stock options added to the denominator under the treasury stock method			664					—
RSUs added to the denominator under the treasury stock method			440,131					—
Less: Undistributed earnings reallocated to RSAs		—					—
Net income (loss) available to common shareholders and assumed conversions	$	9,780	46,386,523	$	0.21	$	(161,304)	45,597,558	$	(3.54)