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Earnings Per Share
 12 Months Ended
Dec. 31, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings per Share

Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average shares outstanding during the period, but also include the dilutive effect of awards of restricted stock, using the treasury stock method, and outstanding convertible preferred stock. Under the treasury stock method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants is assumed to be used to repurchase shares at the average market price. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share, for the years ended December 31, 2014, 2013 and 2012 (in thousands):
 
Income (Loss)
 
Weighted Average Shares
 
Earnings (Loss) Per Share
 
(In thousands, except per share amounts)
Year Ended December 31, 2014
 
 
 
 
 
Basic earnings per share
$
203,260

 
479,644

 
$
0.42

Effect of dilutive securities
 
 
 
 
 
Restricted stock
—

 
2,181

 
 
Convertible preferred stock(1)
6,500

 
17,918

 
 
Diluted earnings per share
$
209,760

 
499,743

 
$
0.42

Year Ended December 31, 2013
 
 
 
 
 
Basic loss per share
$
(609,414
)
 
481,148

 
$
(1.27
)
Effect of dilutive securities
 
 
 
 
 
Restricted stock(2)
—

 
—

 
 
Convertible preferred stock(3)
—

 
—

 
 
Diluted loss per share
$
(609,414
)
 
481,148

 
$
(1.27
)
Year Ended December 31, 2012
 
 
 
 
 
Basic earnings per share
$
86,046

 
453,595

 
$
0.19

Effect of dilutive securities
 
 
 
 
 
Restricted stock
—

 
2,420

 
 
Convertible preferred stock(3)
—

 
—

 
 
Diluted earnings per share
$
86,046

 
456,015

 
$
0.19


____________________
(1)
Potential common shares related to the Company’s outstanding 8.5% and 7.0% convertible perpetual preferred stock covering 71.7 million shares for the year ended December 31, 2014 were excluded from the computation of earnings per share because their effect would have been antidilutive under the if-converted method.
(2)
Restricted stock awards covering 0.5 million shares were excluded from the computation of loss per share because their effect would have been antidilutive.
(3)
Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the years ended December 31, 2013 and 2012, were excluded from the computation of earnings (loss) per share because their effect would have been antidilutive under the if-converted method.

See Note 16 for discussion of the Company’s convertible perpetual preferred stock.

As discussed in Note 16, the Company’s Board adopted a stockholder rights plan in November 2012 under which holders of common stock were issued Rights. As the contingency for exercising these Rights had not been met as of December 31, 2012, the Company did not include the conversion of any Rights in its computation of diluted earnings per share for the year ended December 31, 2012. The Rights expired and the stockholder rights plan was terminated in 2013.