Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share

The computation of basic EPS includes as "participating securities" unvested share-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, under the "two-class" method. Our participating securities are composed of vested restricted stock and restricted stock units with non-forfeitable rights to dividends (of which none have been declared since the issuance of these participating securities). For each of the years ended December 31, 2016, 2015, and 2014, participating securities of 0.1 million have been included in basic EPS.

The computation of diluted EPS for the years ended December 31, 2016, 2015, and 2014 includes weighted average unvested restricted stock units outstanding of 1.5 million, 2.1 million, and 3.1 million, respectively.

For the years ended December 31, 2016 and 2015, all of our outstanding Convertible Senior Notes and Convertible Junior Subordinated Debentures are reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock related to the outstanding Convertible Senior Notes and/or Convertible Junior Debentures is assumed issued as of the beginning of the reporting period and the related interest expense, net of tax, is added back to earnings in calculating diluted EPS. For the year ended December 31, 2014 our 5% Notes and 9% Debentures were not included in calculating diluted EPS as the result was anti-dilutive under the "if-converted" method.

The following table reconciles basic and diluted EPS amounts:



(In thousands, except per share data)	Years Ended December 31,
(In thousands, except per share data)	2016		2015		2014
Basic earnings per share:
Net income	$	342,517	$	1,172,000	$	251,949

Weighted average common shares outstanding	342,890		339,552		338,523

Basic income per share	$	1.00	$	3.45	$	0.74

Diluted earnings per share:
Net income	$	342,517	$	1,172,000	$	251,949
Interest expense, net of tax ⁽¹⁾:
2% Notes	6,111		7,928		12,197
5% Notes	6,362		12,228		—
9% Debentures	15,893		22,786		—
Diluted income available to common shareholders	$	370,883	$	1,214,942	$	264,146

Weighted-average shares - Basic	342,890		339,552		338,523
Effect of dilutive securities:
Unvested restricted stock units	1,470		2,113		3,082
2% Notes	54,450		71,917		71,917
5% Notes	13,107		25,603		—
9% Debentures	20,075		28,854		—
Weighted-average shares - Diluted	431,992		468,039		413,522

Diluted earnings per share	$	0.86	$	2.60	$	0.64

Anti-dilutive securities (in millions)	—		—		54.5


⁽¹⁾	Interest expense for the years ended December 31, 2016 and December 31, 2015 has been tax effected at a rate of 35%. Due to the valuation allowance recorded against deferred tax assets, interest expense for the year ended December 31, 2014 was not tax effected.