Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2016

Basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of shares outstanding for the periods presented. The calculation of diluted earnings (loss) per share includes the impact of potentially dilutive non-vested restricted shares and PSUs outstanding during the periods presented, unless their effect is anti-dilutive. There are no adjustments made to the earnings (loss) attributable to common stockholders in the calculation of diluted earnings (loss) per share.

The following is a calculation of the basic and diluted weighted average shares outstanding for the three and nine months ended September 30, 2016 and 2015:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
	(In thousands)
Basic weighted average common shares outstanding	177,120	137,014	172,360	127,827
Dilution effect of stock awards at end of period	—	—	—	—
Diluted weighted average common shares outstanding	177,120	137,014	172,360	127,827

During the three and nine months ended September 30, 2016 and the nine months ended September 30, 2015, the Company incurred a net loss and therefore the diluted loss per share calculation for those periods excludes the anti-dilutive effect of 5,139,848, 4,935,353 and 2,939,368 unvested stock awards, respectively. In addition, the diluted earnings per share calculation for the three months ended September 30, 2015 excludes the dilutive effect of 2,787,054 unvested stock awards that were anti-dilutive under the treasury stock method.

The Company has the option to settle conversions of its Senior Convertible Notes with cash, shares of common stock or a combination of cash and common stock at its election (see Note 8 – Long-Term Debt). The Company’s intent is to settle the principal amount of the Senior Convertible Notes in cash upon conversion. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the notes (conversion spread) is considered in the diluted earnings per share computation under the treasury stock method. As of September 30, 2016, the conversion value did not exceed the principal amount of the notes, and accordingly, there was no impact to diluted earnings per share for the three and nine months ended September 30, 2016.