Earnings per Share

6 Months Ended

Jun. 30, 2016

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common equivalent shares outstanding during the reporting period. We calculate diluted EPS using the treasury stock method for unvested restricted stock, and the if-converted method for convertible debt instruments. For unvested restricted stock, assumed proceeds under the treasury stock method would include unamortized compensation expense and windfall tax benefits or shortfalls. The determination of potentially issuable shares from our convertible debt instruments does not consider satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. In addition, interest expense, net of tax, related to dilutive convertible debt instruments is added back to earnings in calculating diluted EPS.

The following table reconciles the numerators and denominators used to calculate basic and diluted EPS and also indicates the number of antidilutive securities.



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2016		2015		2016		2015
Basic earnings per share:
Net income	$	109,221	$	113,654	$	178,412	$	246,730
Weighted average common shares outstanding	340,678		339,705		340,411		339,406
Basic income per share	$	0.32	$	0.33	$	0.52	$	0.73

Diluted earnings per share:
Net income	$	109,221	$	113,654	$	178,412	$	246,730
Interest expense, net of tax ⁽¹⁾:
2% Convertible Senior Notes due 2020	1,982		3,049		3,964		6,098
5% Convertible Senior Notes due 2017	1,728		4,692		4,406		9,384
9% Convertible Junior Subordinated Debentures due 2063	3,757		—		8,379		—
Diluted income available to common shareholders	$	116,688	$	121,395	$	195,161	$	262,212

Weighted average shares - basic	340,678		339,705		340,411		339,406
Effect of dilutive securities:
Unvested restricted stock units	1,209		1,831		1,444		2,203
2% Convertible Senior Notes due 2020	71,917		71,917		71,917		71,917
5% Convertible Senior Notes due 2017	13,307		25,674		15,449		25,674
9% Convertible Junior Subordinated Debentures due 2063	19,028		—		21,133		—
Weighted average shares - diluted	446,139		439,127		450,354		439,200
Diluted income per share	$	0.26	$	0.28	$	0.43	$	0.60

Antidilutive securities (in millions)	—		28.9		—		28.9


⁽¹⁾	Due to the valuation allowance recorded against deferred tax assets, the three and six months ended June 30, 2015 were not tax effected. The three and six months ended June 30, 2016 have been tax effected at a rate of 35%.