| Schedule of Earnings Per Share, Basic and Diluted |
The following table presents a reconciliation of the earnings (loss) and shares used in calculating basic and diluted earnings (loss) per share for the years ended December 31, 2019, 2018 and 2017:
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Year Ended |
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December 31, |
(in thousands, except share data) |
2019 |
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2018 |
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2017 |
Numerator: |
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Net income (loss) from continuing operations |
$ |
323,962 |
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|
$ |
(44,290 |
) |
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$ |
308,239 |
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Income from discontinued operations, net of tax |
— |
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|
— |
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|
44,146 |
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Net income (loss) |
$ |
323,962 |
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|
$ |
(44,290 |
) |
|
352,385 |
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Income from discontinued operations attributable to noncontrolling interest |
— |
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— |
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|
3,814 |
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Net income (loss) attributable to Two Harbors Investment Corp. |
323,962 |
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(44,290 |
) |
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348,571 |
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Dividends on preferred stock |
75,801 |
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65,395 |
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|
25,122 |
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Net income (loss) attributable to common stockholders - basic |
248,161 |
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(109,685 |
) |
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323,449 |
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Interest expense attributable to convertible notes (1)
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— |
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— |
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17,867 |
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Net income (loss) attributable to common stockholders - diluted |
$ |
248,161 |
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$ |
(109,685 |
) |
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$ |
341,316 |
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Denominator: |
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Weighted average common shares outstanding |
266,594,154 |
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204,409,853 |
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173,063,178 |
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Weighted average restricted stock shares |
1,232,585 |
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1,610,649 |
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1,370,821 |
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Basic weighted average shares outstanding |
267,826,739 |
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206,020,502 |
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174,433,999 |
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Effect of dilutive shares issued in an assumed conversion |
— |
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— |
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13,699,342 |
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Diluted weighted average shares outstanding |
267,826,739 |
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206,020,502 |
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188,133,341 |
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Basic Earnings (Loss) Per Share: |
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Continuing operations |
$ |
0.93 |
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$ |
(0.53 |
) |
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$ |
1.62 |
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Discontinued operations |
— |
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— |
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|
0.23 |
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Net income (loss) |
$ |
0.93 |
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$ |
(0.53 |
) |
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$ |
1.85 |
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Diluted Earnings (Loss) Per Share: |
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Continuing operations |
$ |
0.93 |
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$ |
(0.53 |
) |
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$ |
1.60 |
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Discontinued operations |
— |
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— |
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|
0.21 |
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Net income (loss) |
$ |
0.93 |
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$ |
(0.53 |
) |
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$ |
1.81 |
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(1)
Includes a nondiscretionary adjustment for the assumed change in the management fee calculation.
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