Earnings per Share

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. During the quarter ended September 30, 2017, we had 9% Debentures outstanding that could result in potentially 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.



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)	2017		2016		2017		2016
Basic earnings per share:
Net income	$	120,027	$	56,618	$	328,447	$	235,030
Weighted average common shares outstanding - basic	370,586		349,376		359,613		343,403
Basic earnings per share	$	0.32	$	0.16	$	0.91	$	0.68

Diluted earnings per share:
Net income	$	120,027	$	56,618	$	328,447	$	235,030
Interest expense, net of tax ⁽¹⁾:
2% Notes	—		1,324		907		5,288
5% Notes	—		673		1,709		5,080
9% Debentures	3,757		—		11,270		—
Diluted income available to common shareholders	$	123,784	$	58,615	$	342,333	$	245,398

Weighted average common shares outstanding - basic	370,586		349,376		359,613		343,403
Effect of dilutive securities:
Unvested RSUs	1,473		1,395		1,367		1,428
2% Notes	—		44,488		11,119		62,707
5% Notes	—		10,791		4,743		13,885
9% Debentures	19,028		—		19,028		—
Weighted average common shares outstanding - diluted	391,087		406,050		395,870		421,423
Diluted earnings per share	$	0.32	$	0.14	$	0.86	$	0.58

Antidilutive securities (in millions)	—		19.0		—		20.4


⁽¹⁾	Tax effected at a rate of 35%.