Earnings per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(In thousands, except per share data)	2016		2015		2016		2015
Basic earnings per share:
Net income	$	56,618	$	822,852	$	235,030	$	1,069,582
Weighted average common shares outstanding	349,376		339,701		343,403		339,504
Basic income per share	$	0.16	$	2.42	$	0.68	$	3.15

Diluted earnings per share:
Net income	$	56,618	$	822,852	$	235,030	$	1,069,582
Interest expense, net of tax ⁽¹⁾:
2% Convertible Senior Notes due 2020	1,324		1,982		5,288		5,946
5% Convertible Senior Notes due 2017	673		3,050		5,080		9,150
9% Convertible Junior Subordinated Debentures due 2063	—		5,697		—		17,090
Diluted income available to common shareholders	$	58,615	$	833,581	$	245,398	$	1,101,768

Weighted average shares - basic	349,376		339,701		343,403		339,504
Effect of dilutive securities:
Unvested restricted stock units	1,395		1,983		1,428		2,128
2% Convertible Senior Notes due 2020	44,488		71,917		62,707		71,917
5% Convertible Senior Notes due 2017	10,791		25,674		13,885		25,674
9% Convertible Junior Subordinated Debentures due 2063	—		28,853		—		28,853
Weighted average shares - diluted	406,050		468,128		421,423		468,076
Diluted income per share	$	0.14	$	1.78	$	0.58	$	2.35

Antidilutive securities (in millions)	19.0		—		20.4		—


⁽¹⁾	Tax effected at a rate of 35%.