Earnings (Loss) Per Share and Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Earnings (Loss) Per Share and Stockholders' Equity

Earnings (Loss) Per Share

The following table sets forth the computation of earnings (loss) per common share and earnings (loss) per common share - assuming dilution:



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016			2015
	(Dollars in thousands, except per share data)
Numerator:
Net income (loss) - numerator for earnings (loss) per common share	$	14,708	$	82,845	$	(30,133	)	$	88,748

Denominator:
Weighted average common shares outstanding (1)	82,516,927		77,237,200		82,322,919			77,139,992
Effect of dilutive securities:
2015 warrants	—		779,926		30,439			793,132
Stock options and deferred compensation agreements	353,052		1,087,893		422,809			1,123,614
Restricted stock and restricted stock units	314,158		122,298		296,649			116,405
Denominator for earnings (loss) per common share - assuming dilution	83,184,137		79,227,317		83,072,816			79,173,143

Earnings (loss) per common share	$	0.18	$	1.07	$	(0.37	)	$	1.15
Earnings (loss) per common share - assuming dilution	$	0.18	$	1.05	$	(0.37	)	$	1.12


(1)	Weighted average common shares outstanding include shares vested under the NMO Deferred Compensation Plan.

Options to purchase shares of our common stock that were outstanding during the respective periods indicated but were not included in the computation of diluted earnings (loss) per share because the options' exercise price was greater than the average market price of the common shares are as follows:



Period	Number of Shares	Range of Exercise Prices
		Minimum	Maximum
Three months ended June 30, 2016	1,061,541	$24.79	$24.79
Three months ended June 30, 2015	—	$—	$—
Six months ended June 30, 2016	1,061,541	$24.79	$24.79
Six months ended June 30, 2015	—	$—	$—

Stockholders' Equity

In August 2015, we completed an underwritten public offering of 8,600,000 shares of our common stock at a public offering price of $25.25 per share, of which 4,300,000 shares remained subject to a forward sale agreement as of June 30, 2016. The underwriters exercised in full their option to purchase 1,290,000 additional shares of common stock, which was subject to a separate forward sale agreement. Settlement of the forward sale agreements occurred on August 1, 2016 as we issued 5,590,000 shares of our common stock and received $134.7 million in net proceeds. We contributed the net proceeds from the settlement to the capital and surplus of American Equity Life.

The forward sale agreements had no initial fair value since they were entered into at the then market price of the common stock. The forward sale agreements are equity instruments and qualify for an exception from derivative and fair value accounting.