EPS Calculation (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of reconciliation of the earnings and shares used in calculating basic and diluted EPS

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In Thousands, Except Per Share Amounts)	2019			2018			2019			2018
Basic EPS:
Net income to common stockholders	$	95,599		$	87,132		$	277,496		$	240,922
Dividends declared on preferred stock	(3,750		)	(3,750		)	(11,250		)	(11,250		)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(280		)	(241		)	(808		)	(702		)
Net income to common stockholders - basic	$	91,569		$	83,141		$	265,438		$	228,970
Basic weighted average common shares outstanding	451,020			428,713			450,641			408,614
Basic EPS	$	0.20		$	0.19		$	0.59		$	0.56

Diluted EPS:
Net income to common stockholders - basic	91,569			83,141			265,438			228,970
Interest expense on Convertible Senior Notes	3,879			—			5,085			—
Net income to common stockholders - diluted	$	95,448		$	83,141		$	270,523		$	228,970
Basic weighted average common shares outstanding	451,020			428,713			450,641			408,614
Effect of assumed Convertible Senior Notes conversion to common shares	28,920			—			12,712			—
Diluted weighted average common shares outstanding (1)	479,940			428,713			463,353			408,614
Diluted EPS	$	0.20		$	0.19		$	0.58		$	0.56

(1)

At September 30, 2019, the Company had approximately 3.0 million equity instruments outstanding that were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2019, as their inclusion would have been anti-dilutive. These equity instruments reflect RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $7.37. These equity instruments may have a dilutive impact on future EPS.

During the three and nine months ended September 30, 2019, the Convertible Senior Notes were determined to be dilutive and were included in the calculation of diluted EPS under the “if-converted” method. Under this method, the periodic interest expense for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether the conversion option is in or out of the money) is included in the denominator for the purpose of calculating diluted EPS.