EPS Calculation

3 Months Ended

Mar. 31, 2021

The following table presents a reconciliation of the earnings/(loss) and shares used in calculating basic and diluted earnings/(loss) per share for the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
(In Thousands, Except Per Share Amounts)	2021		2020
Basic Earnings/(Loss) per Share:
Net income/(loss) to common stockholders	$	85,522	$	(908,995)
Dividends declared on preferred stock	(8,219)		(5,215)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(274)		—
Net income/(loss) to common stockholders - basic	$	77,029	$	(914,210)
Basic weighted average common shares outstanding	451,135		452,979
Basic Earnings/(Loss) per Share	$	0.17	$	(2.02)

Diluted Earnings/(Loss) per Share:
Net income/(loss) to common stockholders - basic	$	77,029	$	(914,210)
Interest expense on Convertible Senior Notes	3,909		—
Net income/(loss) to common stockholders - diluted	$	80,938	$	(914,210)
Basic weighted average common shares outstanding	451,135		452,979
Effect of assumed conversion of Convertible Senior Notes to common shares	28,920		—
Diluted weighted average common shares outstanding (1)	480,055		452,979
Diluted Earnings/(Loss) per Share	$	0.17	$	(2.02)

(1)At March 31, 2021, the Company had approximately 3.1 million equity instruments outstanding that were not included in the calculation of diluted EPS for the three months ended March 31, 2021, 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 $4.87. These equity instruments may have a dilutive impact on future EPS.

During the three months ended March 31, 2021, 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. The Convertible Senior Notes may have a dilutive impact on future EPS.