5.	Earnings Per Common Share

We compute earnings per share in accordance with ASC Topic 260,

Earnings per Share

("ASC 260"), which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the two-class method. The two-class method is an allocation of earnings between the holders of common stock and a company's participating security holders. Under the two-class method, earnings for the reporting period are allocated between common shareholders and other security holders based on their respective participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method.

Basic earnings per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of basic common stock outstanding. Our Series B junior participating convertible preferred stock ("Series B Preferred Stock"), which was convertible into shares of our common stock at the holder’s option, and our unvested restricted stock, are classified as participating securities in accordance with ASC 260. Net income allocated to the holders of our Series B Preferred Stock and unvested restricted stock is calculated based on the shareholders’ proportionate share of weighted average shares of common stock outstanding on an if-converted basis.

For purposes of determining diluted earnings per common share, basic earnings per common share is further adjusted to include the effect of potential dilutive common shares outstanding, including stock options, stock appreciation rights, performance share awards and unvested restricted stock using the more dilutive of either the two-class method or the treasury stock method, and Series B Preferred Stock and convertible debt using the if-converted method. Under the two-class method of calculating diluted earnings per share, net income is reallocated to common stock, the Series B Preferred stock and all dilutive securities based on the contractual participating rights of the security to share in the current earnings as if all of the earnings for the period had been distributed. In the computation of diluted earnings per share, the two-class method and if-converted method for the Series B Preferred Stock resulted in the same earnings per share amounts as the holder of the Series B Preferred Stock had the same economic rights as the holders of the common stock.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands, except per share amounts)

Numerator:
Net income	$	132,348		$	47,177		$	317,769		$	135,980
Less: Net income allocated to preferred shareholder		―			(11,342	)		―			(32,818	)
Less: Net income allocated to unvested restricted stock		(294	)		(93	)		(635	)		(274	)
Net income available to common stockholders for basic earnings per common share		132,054			35,742			317,134			102,888
Effect of dilutive securities:
Net income allocated to preferred shareholder		―			11,342			―			32,818
Interest on 1.625% convertible senior notes due 2018		91			―			1,088			―
Interest on 0.25% convertible senior notes due 2019		82			―			984			―
Interest on 1.25% convertible senior notes due 2032		62			41			744			490
Net income available to common and preferred stock for diluted earnings per share	$	132,289		$	47,125		$	319,950		$	136,196

Denominator:
Weighted average basic common shares outstanding		118,338,891			55,345,443			119,188,145			55,059,683
Weighted average additional common shares outstanding if preferred shares converted to common shares (if dilutive)		―			17,562,557			―			17,562,557
Total weighted average common shares outstanding if preferred shares converted to common shares		118,338,891			72,908,000			119,188,145			72,622,240
Effect of dilutive securities:
Share-based awards		643,602			684,511			605,860			830,501
1.625% convertible senior notes due 2018		7,165,845			―			7,165,845			―
0.25% convertible senior notes due 2019		3,638,080			―			3,638,080			―
1.25% convertible senior notes due 2032		6,290,997			6,262,570			6,290,997			6,262,570
Weighted average diluted shares outstanding		136,077,415			79,855,081			136,888,927			79,715,311

Income per common share:
Basic	$	1.12		$	0.65		$	2.66		$	1.87
Diluted	$	0.97		$	0.59		$	2.34		$	1.71