Income Per Share and Partnership Unit
 9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Income Per Share and Partnership Unit
Income Per Share and Partnership Unit
Income per share has been computed using the two-class method which is computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both shares of common stock and participating securities based on the weighted average shares outstanding during the period. Classification of the Company's unvested restricted stock, which contain rights to receive non-forfeitable dividends, are deemed participating securities under the two-class method. Under the two-class method, earnings attributable to unvested restricted shares are deducted from income from continuing operations in the computation of net income attributable to common stockholders.
The table below is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share computed using the two-class method (dollars in thousands):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2017
 
2016
 
2017
 
2016
Basic and diluted income:
 
 
 
 
 
 
 
Net income
5,322

 
27,399


41,357

 
96,458

Less: income attributable to unvested restricted stock
(265
)
 
(192
)
 
(682
)
 
(430
)
Net income attributable to common stockholders used in basic and diluted income per share
$
5,057

 
$
27,207

 
$
40,675

 
$
96,028

 
 
 
 
 
 
 
 
Basic weighted average shares of common stock outstanding:
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding
458,035,972

 
480,326,857

 
473,919,177

 
457,992,378

Less: unvested weighted average shares of restricted stock
(1,364,355
)
 
(772,495
)
 
(1,220,485
)
 
(728,852
)
Weighted average shares of common stock outstanding used in basic income per share
456,671,617

 
479,554,362

 
472,698,692

 
457,263,526

Net income per share attributable to common stockholders—basic
$
0.01

 
$
0.06

 
$
0.09

 
$
0.21

 
 
 
 
 
 
 
 
Diluted weighted average shares of common stock outstanding: (1)
 
 
 
 
 
 
 
Unvested performance shares
—

 
67,506

 
—

 
33,938

Stock options
—

 
4,688

 
—

 
4,159

Convertible debt
—

 
972,054

 
—

 
—

Weighted average shares of common stock outstanding used in diluted income per share
456,671,617

 
480,598,610

 
472,698,692

 
457,301,623

Net income per share attributable to common stockholders—diluted
$
0.01

 
$
0.06

 
$
0.09

 
$
0.21

 
 
 
 
 
 
 
 
Potentially dilutive shares of common stock
 
 
 
 
 
 
 
Unvested shares of restricted stock
—

 
181,667

 
32,150

 
121,230

Total
—

 
181,667

 
32,150

 
121,230


(1)  Assumes the most dilutive issuance of potentially issuable shares between the two-class and treasury stock method unless the result would be anti-dilutive.
The Corporation intends to satisfy its exchange obligation for the principal amount of the Convertible Notes to the note holders entirely in cash, therefore, the "if-converted" method does not apply and the treasury stock method is being used. For the three and nine months ended September 30, 2017, the Corporation's average stock price was below the conversion price, resulting in zero potentially dilutive shares related to the conversion spread for both periods.