Earnings Per Share

3 Months Ended

Mar. 31, 2020

COMMON STOCK AND EARNINGS PER SHARE

Earnings per Share

The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):



	Three Months Ending March 31,
	2020			2019
Numerator:
Earnings from continuing operations - basic	$	133,733		$	22,634
Gain from stock warrants revaluation, net of tax	(76,361		)	(7,653		)
Earnings from continuing operations - diluted	$	57,372		$	14,981

Denominator:
Weighted-average shares outstanding for basic earnings per share	59,040			58,838
Common equivalent shares:
Effect of stock-based compensation awards and warrants	8,907			1,599
Weighted-average shares outstanding assuming dilution	67,947			60,437
Basic earnings per share from continuing operations	$	2.27		$	0.38
Diluted earnings per share from continuing operations	$	0.84		0.25

The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note D), if such warrants have an anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding.

The underlying warrants recorded as a liability as of March 31, 2020 and 2019 would have resulted in 39.5 million and 39.5 million additional shares of the Company's common stock, respectively, if the warrants were settled by tendering cash.

The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution because their effect would have been anti-dilutive, were 9.2 million for the three month period ended March 31, 2019.