Earnings per Share

6 Months Ended

Jun. 30, 2020

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. For purposes of calculating basic EPS, vested restricted stock and restricted stock units (“RSUs”) are considered outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. The determination of whether components are dilutive is calculated independently for each period. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if unvested RSUs result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures 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. For the quarter ended June 30, 2020, common stock equivalents of 19.1 million were not included because they were anti-dilutive.

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.



Earnings per share
Table	6.1
		Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)		2020		2019		2020		2019
Basic earnings per share:
Net income		$	14,047	$	167,778	$	163,852	$	319,719
Weighted average common shares outstanding - basic		338,593		355,734		341,323		355,694
Basic earnings per share		$	0.04	$	0.47	$	0.48	$	0.90

Diluted earnings per share:
Net income		$	14,047	$	167,778	$	163,852	$	319,719
Interest expense, net of tax ⁽¹⁾:
9% Debentures		—		4,566		9,132		9,132
Diluted income available to common shareholders		$	14,047	$	172,344	$	172,984	$	328,851

Weighted average common shares outstanding - basic		338,593		355,734		341,323		355,694
Effect of dilutive securities:
Unvested RSUs		1,068		1,841		1,551		1,913
9% Debentures		—		19,028		19,129		19,028
Weighted average common shares outstanding - diluted		339,661		376,603		362,003		376,635
Diluted earnings per share		$	0.04	$	0.46	$	0.48	$	0.87

⁽¹⁾

The periods ended June 30, 2020 and 2019 were tax-effected at a rate of 21%.