Earnings Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Note 10—Earnings Per Share
Basic EPS is calculated by dividing net income available to Class A Common Stock by the weighted average shares of Class A Common Stock outstanding during each period. Dilutive EPS is calculated by dividing adjusted net income available to Class A Common Stock by the weighted average number of diluted Class A Common Stock outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted EPS calculation consists of (i) unvested restricted stock and performance stock units, outstanding stock options, withholding amounts from employee stock purchase plan and warrants using the treasury stock method, and (ii) the Company’s Class C common stock using the “if-converted” method, which is net of tax. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and therefore excluded from the computation of diluted earnings per share.
The two-class method of computing earnings per share is required for entities that have participating securities. The two-class method is an earnings allocation formula that determines earnings per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings.
Shares of the Company’s unvested restricted stock and performance stock units are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, these shares are not considered participating securities. Shares of the Company’s Class C Common Stock and warrants do not share in earnings or losses and are therefore not participating securities. All of the Company’s shares of Series B Preferred Stock were converted into shares of Class A Common Stock on May 25, 2017 in accordance with their terms. As such, the Company no longer has any participating securities as of December 31, 2017 and thereafter.
The following table reflects the allocation of net income to common stockholders and EPS computations for the periods indicated based on a weighted average number of common stock outstanding for the period:
 
Year Ended December 31,
(in thousands, except per share data)
2019
 
2018
 
2017
Net income attributable to Class A Common Stock
$
15,798

 
$
199,899

 
$
75,568

Add: Income from conversion of Class C Common Stock
328

 
—

 
—

Adjusted net income attributable to Class A Common Stock
$
16,126

 
$
199,899

 
$
75,568

 
 
 
 
 
 
Basic net earnings per share of Class A Common Stock
$
0.06

 
$
0.76

 
$
0.32

Diluted net earnings per share of Class A Common Stock
$
0.06

 
$
0.75

 
$
0.32

 
 
 
 
 
 
Basic weighted average shares of Class A Common Stock outstanding
267,700

 
263,341

 
235,447

Add: Dilutive effects of conversion of Class C Common Stock
8,869

 
—

 
—

Add: Dilutive effects of potential common stock
63

 
3,514

 
4,307

Diluted weighted average shares of Class A Common Stock outstanding
276,632

 
266,855

 
239,754


The following table presents shares were excluded from the diluted earnings per share calculation as their impacts were anti-dilutive for the periods presented:
 
Year Ended December 31,
(in thousands)
2019
 
2018
 
2017
Out-of-the-money stock options
4,706

 
818

 
819

Restricted stock
2,895

 
—

 
—

Performance stock units
—

 
39

 
—

Employee Stock Purchase Plan
22

 
—

 
—

Weighted average shares of Class C Common Stock
—

 
12,791

 
18,629

Warrants
8,000

 
—

 
—