EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing earnings, after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. As management deemed the exercise price for the Class A of $0.01 per share to be nominal, warrant proceeds are ignored and the shares issuable upon Class A warrant exercise are included in the calculation of Class A basic weighted average common shares outstanding for all periods.

The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units. Participating securities are defined by ASC 260, Earnings Per Share, as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents and are included in the computation of earnings per share pursuant to the two-class method.

On June 2, 2016 the Board approved the Reverse Split Amendment to the Company’s Amended and Restated Certificate of Incorporation. The Reverse Split Amendment effected the Reverse Split. The Reverse Split Amendment became effective on June 13, 2016. In accordance with ASC 260, Earnings Per Share, the Company adjusted the computations of basic and diluted earnings per share retroactively for all periods presented to reflect that change in its capital structure.

Accordingly, amounts previously reported for the year ended December 31, 2015, and for the quarters ended March 31, 2015, June 30, 2015, September 30, 2015, and March 31, 2016 with respect to income/(loss) per share, outstanding Class A common shares, Class A restricted stock units, Class A restricted shares and Class A stock options, Class B shares and Class B warrants have been restated, where appropriate. The table below shows the effect of the Reverse Split on the calculation of per share amounts previously reported.



	Three Months Ending								Year Ended		Three Months Ending
(Thousands of shares)	March 31, 2015		June 30, 2015		September 30, 2015		December 31, 2015		December 31, 2015		March 31, 2016
	(unaudited)										(unaudited)
Decrease in weighted average number of shares outstanding used to calculate basic net income/(loss) per share amounts for Class A	(477,862	)	(477,881	)	(477,949	)	(477,996	)	(477,923	)	(473,688	)

Decrease in weighted average number of shares outstanding used to calculate diluted net income/(loss) per share amounts for Class A	(477,862	)	(478,109	)	(477,996	)	(477,996	)	(478,145	)	(473,688	)

Decrease in weighted average number of shares outstanding used to calculate basic and diluted net income/(loss) per share amounts for Class B	(6,604	)	(6,602	)	(6,600	)	(6,600	)	(6,602	)	(6,600	)

Class A

There were 32,120, 54,993, and 52,730 weighted average shares of unvested Class A restricted common stock shares considered to be participating securities as of December 2017, 2016 and 2015, respectively. Such participating securities were allocated a portion of income under the two-class method for the years ended December 31, 2017 and 2015, but no allocation of loss was made for the year ended December 31, 2016 since the holders of the participating securities do not participate in losses.

The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities. As of December 31, 2017, there were 660,999 shares of Class A restricted stock units and 371,893 Class A stock options outstanding and considered to be potentially dilutive securities. As of December 31, 2016 there were 485,223 shares of Class A restricted stock units and 1,114,103 Class A stock options outstanding and considered to be potentially dilutive securities. As of December 31, 2015 there were 268,066 shares of Class A restricted stock units and 268,538 Class A stock options outstanding and considered to be potentially dilutive securities.

Class B

There are no participating securities or potentially dilutive securities relating to the Class B Common Stock. The Class B shares were all converted to Class A shares in May 2016.

The components of the calculation of basic earnings per share and diluted earnings per share are as follows:



	Years Ended December 31,
	2017		2016			2015
Income/(loss) from continuing operations	$	55,978	$	(1,059	)	$	80,565
(Loss)/income from discontinued operations	—		(292,555		)	203,395
Net income/(loss)	$	55,978	$	(293,614	)	$	283,960

Weighted average common shares outstanding:
Class A common stock - basic	87,834,769		90,949,577			95,584,559
Class A common stock - diluted	88,082,978		90,949,577			95,629,090
Class B common stock - basic	—		533,758			1,320,337
Class B common stock - diluted	—		533,758			1,320,337

Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows:



	Years Ended December 31,
	2017		2016			2015
Net income/(loss) from continuing operations allocated to:
Class A Common Stockholders	$	55,957	$	(1,002	)	$	79,424
Class B Common Stockholders ⁽²⁾	—		(57		)	1,097
Participating securities ⁽¹⁾	21		—			44
	$	55,978	$	(1,059	)	$	80,565

Net income/(loss) from discontinued operations allocated to:
Class A Common Stockholders	$	—	$	(295,001	)	$	200,515
Class B Common Stockholders ⁽²⁾	—		2,426			2,770
Participating securities ⁽¹⁾	—		20			110
	$	—	$	(292,555	)	$	203,395


(1)	For the years ended December 31, 2017 and 2015, income from continuing operations allocated to participating securities relates to unvested restricted stock. For the year ended December 31, 2016 and 2015, income from discontinued operations allocated to participating securities relates to amounts equivalent to the cash dividends declared.


(2)	The December 31, 2016 and 2015 income allocated to Class B common stockholders includes amounts equivalent to the special cash dividends declared on the Class B common stock shares.

For annual earnings per share calculations, there were 248,209 and 44,531 dilutive equity awards outstanding for the years ended December 31, 2017 and 2015. Awards of 732,690, 1,074,548 and 221,218 shares of common stock for 2017, 2016 and 2015, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive.