Earnings per Share

3 Months Ended

Mar. 31, 2017

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. We calculate diluted EPS using the treasury stock method and if-converted method. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our convertible debt instruments result in the issuance of common stock. The determination of potentially issuable shares does not consider the 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. As of March 31, 2017, we had several debt issuances that could result in contingently issuable shares and consider each potential issuance of shares separately to reflect the maximum potential dilution. Nonetheless, our dilutive common stock equivalents may not reflect all of the contingently issuable shares that could be required to be issued upon any debt conversion. See Note 3 - “Debt’ for a discussion of subsequent events affecting our debt issuances that could result in contingently issuable shares. For purposes of calculating basic and diluted EPS, vested restricted stock and restricted stock units ("RSUs") are considered outstanding.

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 March 31,
(In thousands, except per share data)	2017		2016
Basic earnings per share:
Net income	$	89,798	$	69,191
Weighted average common shares outstanding	341,009		340,144
Basic income per share	$	0.26	$	0.20

Diluted earnings per share:
Net income	$	89,798	$	69,191
Interest expense, net of tax ⁽¹⁾:
2% Notes	823		1,982
5% Notes	1,282		2,678
9% Debentures	3,757		—
Diluted income available to common shareholders	$	95,660	$	73,851

Weighted average shares - basic	341,009		340,144
Effect of dilutive securities:
Unvested RSUs	1,488		1,679
2% Notes	29,859		71,917
5% Notes	10,791		17,625
9% Debentures	19,028		—
Weighted average shares - diluted	402,175		431,365
Diluted income per share	$	0.24	$	0.17

Antidilutive securities (in millions)	—		23.3


⁽¹⁾	Tax effected at a rate of 35%.