TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2020

The following table presents a reconciliation of the earnings (loss) and shares used in calculating basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2020		2019		2020		2019
Numerator:


Net income (loss)	$	201,914	$	305,700	$	(1,841,306)	$	189,208


Dividends on preferred stock	18,950		18,951		56,851		56,851
Net income (loss) attributable to common stockholders - basic	182,964		286,749		(1,898,157)		132,357
Interest expense attributable to convertible notes (1)	4,812		4,779		—		—
Net income (loss) attributable to common stockholders - diluted	$	187,776	$	291,528	$	(1,898,157)	$	132,357
Denominator:
Weighted average common shares outstanding	272,415,242		271,689,878		272,315,905		264,871,455
Weighted average restricted stock shares	1,290,543		1,207,697		1,252,093		1,243,317
Basic weighted average shares outstanding	273,705,785		272,897,575		273,567,998		266,114,772
Effect of dilutive shares issued in an assumed conversion	18,171,150		18,156,143		—		—
Diluted weighted average shares outstanding	291,876,935		291,053,718		273,567,998		266,114,772
Earnings (Loss) Per Share
Basic	$	0.67	$	1.05	$	(6.94)	$	0.50
Diluted	$	0.64	$	1.00	$	(6.94)	$	0.50

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(1)If applicable, includes a nondiscretionary adjustment for the assumed change in the management fee calculation.

For the nine months ended September 30, 2020, excluded from the calculation of diluted earnings per share is the effect of adding back $14.3 million of interest expense, net of a nondiscretionary adjustment for the assumed change in the management fee calculation, and 18,171,150 weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive.

For the nine months ended September 30, 2019, excluded from the calculation of diluted earnings per share is the effect of adding back $14.2 million of interest expense, net of a nondiscretionary adjustment for the assumed change in the management fee calculation, and 18,116,911 weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive.