Earnings per Common Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings per Common Share

Note 5. Earnings per Common Share

Earnings per common share, basic, is computed by dividing net income allocable to common shareholders (net income less preferred stock dividends) by the weighted-average number of common shares outstanding for the period.

Earnings per common share, diluted, is computed by dividing net income allocable to common shareholders, adjusted for preferred stock dividends and the interest on the Company's convertible notes, by the weighted-average number of common shares – diluted. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share.” Dilutive securities include the common stock equivalents of convertible preferred stock and convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units granted to employees and non-employee directors (Note 14).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when diluted earnings per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2013			2012			2013		2012
Earnings (loss) per common share—basic
Net income (loss)	$	(21,153	)	$	(86,798	)	$	30,578	$	(52,197	)
Less: Preferred stock dividends	1,766			2,414			3,332		7,664
Net income (loss) allocable to common shareholders	$	(22,919	)	$	(89,212	)	$	27,246	$	(59,861	)
Weighted-average common shares outstanding—basic	72,649			67,162			71,613		65,740
Basic earnings (loss) per common share	$	(0.32	)	$	(1.33	)	$	0.38	$	(0.91	)
Earnings (loss) per common share—diluted
Net income (loss)	(21,153		)	$	(86,798	)	$	30,578	$	(52,197	)
Less: Preferred stock dividends	1,766			2,414			3,332		7,664
Add: Interest on convertible debt, net of tax	—			—			3,673		—
Net income (loss) including assumed conversions	$	(22,919	)	$	(89,212	)	$	30,919	$	(59,861	)
Weighted-average common shares outstanding—basic	72,649			67,162			71,613		65,740
Convertible notes weighted-average shares outstanding	—			—			15,000		—
Options and restricted stock	—			—			257		—
Weighted-average common shares outstanding—diluted	72,649			67,162			86,870		65,740
Dilutive earnings (loss) per common share	$	(0.32	)	$	(1.33	)	$	0.36	$	(0.91	)

Securities that resulted in an anti-dilutive effect were excluded from the earnings per share computation as follows: For the three months ended September 30, 2013 and 2012, securities outstanding totaling approximately 24,716,000 and 26,135,000 shares, respectively, including common shares underlying preferred stock of 4,446,000 and 14,958,000, respectively, common shares underlying convertible senior notes of 15,000,000 and 5,275,000, respectively, in addition to antidilutive options and restricted stock. For the nine months ended September 30, 2013 and 2012, securities outstanding totaling approximately 11,117,000 and 28,222,000 shares, respectively, including common shares underlying preferred stock of 5,426,000 and 18,225,000, respectively, antidilutive options and restricted stock, and common shares underlying convertible senior notes of 1,758,000 for the nine months ended September 30, 2012.