Earnings Per Share

12 Months Ended

Dec. 31, 2019

The Company calculates basic earnings per common share by dividing net income attributable to the Company’s common stockholders for the period by weighted-average shares of common stock outstanding for that period. Diluted earnings per common share takes into account the effect of dilutive instruments, such as convertible notes and performance stock units, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding.

During the years ended December 31, 2019, 2018 and 2017, the Company’s Convertible Notes were determined to be dilutive and were included in the calculation of diluted earnings per common share under the “if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator.

During the years ended December 31, 2019 and 2018, PSUs awarded under the 2017 Plan were determined to be dilutive and were included in the calculation of diluted earnings per common share under the treasury stock method. Under this method, common equivalent shares are calculated assuming that target PSUs vest according to the PSU Agreements and unrecognized compensation cost is used to repurchase shares of the Company’s outstanding common stock at the average market price during the reported period. There were no dilutive PSU awards during the year ended December 31, 2017.

The following table presents the computation of basic and diluted earnings per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts):



	Year Ended December 31,
	2019			2018			2017
Basic Earnings per Common Share
Net income attributable to Company	$	173,736		$	102,886		$	91,980
Less: Preferred stock dividends	(28,901		)	(23,700		)	(15,660		)
Net income attributable to Company’s common stockholders	$	144,835		$	79,186		$	76,320
Basic weighted average common shares outstanding	221,380			127,243			111,836
Basic Earnings per Common Share	$	0.65		$	0.62		$	0.68

Diluted Earnings per Common Share:
Net income attributable to Company	$	173,736		$	102,886		$	91,980
Less: Preferred stock dividends	(28,901		)	(23,700		)	(15,660		)
Add back: Interest expense on convertible notes for the period, net of tax	10,662			10,475			9,158
Net income attributable to Company’s common stockholders	$	155,497		$	89,661		$	85,478
Weighted average common shares outstanding	221,380			127,243			111,836
Net effect of assumed convertible notes conversion to common shares	19,695			19,695			18,507
Net effect of assumed PSUs vested	1,521			512			—
Diluted weighted average common shares outstanding	$	242,596		$	147,450		$	130,343
Diluted Earnings per Common Share	$	0.64		$	0.61		$	0.66