Earnings (Loss) Per Common Share

9 Months Ended

Sep. 30, 2021

10. Earnings (Loss) Per Common Share

The Company calculates earnings (loss) per share using the two-class method. The two-class method allocates net income or loss to each class of common stock and participating security according to common dividends declared and participation rights in undistributed earnings. For reporting periods in which a net loss is recorded, net loss is not allocated to participating securities because the holders of such securities bear no contractual obligation to fund or otherwise share in the losses. Participating securities consist of nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents.

A summary of the information used in the computation of earnings (loss) per common share follows.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2021		2020		2021		2020
Numerator:
Net income (loss) to common shareholders	$	129,582	$	79,356	$	325,472	$	(148,749	)
Net dividends or income allocated to participating securities - basic and diluted		2,419		1,435		6,650		1,278
Net income (loss) allocated to common shareholders - basic and diluted	$	127,163	$	77,921	$	318,822	$	(150,027	)
Denominator:
Weighted-average common shares - basic		86,834		86,358	$	86,800	$	86,614
Dilutive potential common shares		172		42		151		—
Weighted-average common shares - diluted		87,006		86,400	$	86,951	$	86,614
Earnings (loss) per common share:
Basic	$	1.46	$	0.90	$	3.67	$	(1.73	)
Diluted	$	1.46	$	0.90	$	3.67	$	(1.73	)

Potential common shares consist of stock options, nonvested performance-based awards, and nonvested restricted share awards deferred under the Company’s nonqualified deferred compensation plan. These potential common shares do not enter into the calculation of diluted earnings per share if the impact would be antidilutive, i.e., increase earnings per share or reduce a loss per share. No potential common shares would have had an antidilutive effect in the calculation of earnings per common share for the three months ended September 30, 2021. For the nine months ended September 30, 2021, antidilutive potential common shares with a weighted average of 796 were excluded from the computation of earnings per common share. For the three months ended September 30, 2020, antidilutive potential common shares with a weighted average of 78,867 were excluded from the computation of earnings per common share. For reporting periods in which a net loss is reported, no effect is given to potentially dilutive common shares in the computation of loss per common share as any impact from such shares would be antidilutive; as such, no effect was given to antidilutive potential common shares for the computation of earnings per common share for the nine months ended September 30, 2020.