Earnings (Loss) Per Common Share

9 Months Ended

Sep. 30, 2020

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

During the three months ended September 30, 2020 and the three and nine months ended September 30, 2019, 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) is included in the denominator. During the nine months ended September 30, 2020, the Company's Convertible Notes were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share.

During the three months ended September 30, 2020, the RSUs 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 RSUs vest according to the RSU 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. During the nine months ended September 30, 2020, the RSUs awarded under the 2017 Plan were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share under the treasury stock method. There were no RSUs outstanding during the three and nine months ended September 30, 2019.

During the three months ended September 30, 2020, certain of the 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. During the nine months ended September 30, 2020, the PSUs awarded under the 2017 Plan were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share. During the three and nine months ended September 30, 2019, the PSUs awarded under the 2017 Plan were determined to be dilutive and were included in the calculation of diluted earnings per common share.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic Earnings (Loss) per Common Share:
Net income (loss) attributable to Company	$	101,641	$	41,379	$	(368,929)	$	108,254
Less: Preferred Stock dividends	(10,297)		(6,544)		(30,890)		(18,726)
Net income (loss) attributable to Company's common stockholders	$	91,344	$	34,835	$	(399,819)	$	89,528
Basic weighted average common shares outstanding	377,744		234,043		368,740		203,270
Basic Earnings (Loss) per Common Share	$	0.24	$	0.15	$	(1.08)	$	0.44

Diluted Earnings (Loss) per Common Share:
Net income (loss) attributable to Company	$	101,641	$	41,379	$	(368,929)	$	108,254
Less: Preferred Stock dividends	(10,297)		(6,544)		(30,890)		(18,726)
Add back: Interest expense on convertible notes for the period, net of tax	2,525		2,674		—		7,981
Net income (loss) attributable to Company's common stockholders	$	93,869	$	37,509	$	(399,819)	$	97,509
Weighted average common shares outstanding	377,744		234,043		368,740		203,270
Net effect of assumed convertible notes conversion to common shares	19,694		19,694		—		19,694
Net effect of assumed RSUs vested	1,902		—		—		—
Net effect of assumed PSUs vested	369		1,800		—		1,781
Diluted weighted average common shares outstanding	399,709		255,537		368,740		224,745
Diluted Earnings (Loss) per Common Share	$	0.23	$	0.15	$	(1.08)	$	0.43