Earnings Per Share
 6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share
Note 10—Earnings Per Share
Basic earnings per share (“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. Diluted EPS is calculated by dividing adjusted net income available to Class A Common Stock by the weighted average shares 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 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.
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. The Company’s shares of Series B Preferred Stock had a non-forfeitable right to participate in distributions with common stockholders on a pro-rata, as-converted basis. All of 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 June 30, 2018 and 2017.
The following table reflects the allocation of net income to common shareholders and EPS computations for the periods indicated based on a weighted average number of common stock outstanding for the period:

For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in thousands, except per share data)
2018
 
2017

2018

2017
Net income attributable to Class A Common Stock
$
63,541


$
20,762


$
129,631


$
30,585

Add: Income from conversion of Class C Common Stock
—


1,477


—


1,995

Adjusted net income attributable to Class A Common Stock
63,541

 
22,239

 
129,631

 
32,580

 
 
 
 
 
 
 
 
Basic net earnings per share of Class A Common Stock
$
0.24

 
$
0.09

 
$
0.49

 
$
0.14

Diluted net earnings per share of Class A Common Stock
$
0.24

 
$
0.09

 
$
0.49

 
$
0.14

 
 
 
 
 
 
 
 
Basic weighted average shares of Class A Common Stock outstanding
263,757

 
223,623

 
262,547

 
212,759

Add: Dilutive effects of equity awards
3,249

 
925

 
3,554

 
2,046

Add: Dilutive effects of conversion
—

 
19,156

 
—

 
19,156

Diluted weighted average shares of Class A Common Stock outstanding
267,006

 
243,704

 
266,101

 
233,961


For the three and six months ended June 30, 2018 and 2017, the following shares were excluded from the diluted earnings per share calculation as their impacts were anti-dilutive:

For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Out-of-the-money stock options
643

 
1,498

 
407

 
818

Weighted average shares of Class C Common Stock
12,314

 
—

 
13,497

 
—

Performance stock units
155

 
—

 
77

 
—