Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2020

(7) INCOME (LOSS) PER COMMON SHARE

Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common shareholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following sets forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands, except per share amounts):

		Three Months Ended September 30,						Nine Months Ended September 30,
		2020			2019			2020			2019
Net (loss) income, as reported	$	(680,048	)	$	(27,581	)	$	(681,642	)	$	89,023
Participating earnings ^(a)		—			(67	)		—			(1,105	)
Basic net (loss) income attributed to common shareholders		(680,048	)		(27,648	)		(681,642	)		87,918
Reallocation of participating earnings ^(a)		—			—			—			3
Diluted net (loss) income attributed to common shareholders	$	(680,048	)	$	(27,648	)	$	(681,642	)	$	87,921
Net (loss) income per common share:
Basic	$	(2.83	)	$	(0.11	)	$	(2.82	)	$	0.35
Diluted	$	(2.83	)	$	(0.11	)	$	(2.82	)	$	0.35

^(a)

Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses.

The following provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019		2020	2019
Weighted average common shares outstanding – basic	239,895	248,082		241,770	247,878
Effect of dilutive securities:
Director and employee restricted stock and performance based equity awards	—	—		—	945
Weighted average common shares outstanding – diluted	239,895	248,082		241,770	248,823

Weighted average common shares outstanding-basic for third quarter 2020 excludes 6.2 million shares of restricted stock held in our deferred compensation plan compared to 3.3 million shares in third quarter 2019 (although all awards are issued and outstanding upon grant). Weighted average common shares outstanding-basic for first nine months 2020 excludes 5.3 million shares of restricted stock compared to 3.1 million shares for first nine months 2019. Due to our net loss for third quarter 2020, third quarter 2019 and first nine months 2020, we excluded all equity grants from the computation of diluted loss per share because the effect would have been anti-dilutive to the computations. For first nine months 2019, equity grants of 1.6 million were outstanding but not included in the computation of diluted net income per share because the grant prices were greater than the average market price of our common shares and would be anti-dilutive to the computation. Nonvested restricted stock and performance based equity awards are included in the computation using the treasury stock method with the deemed proceeds equal to the average unrecognized compensation during the period.