| Income Per Share and Partnership Unit |
Note 10. Income Per Share and Partnership Unit
Income per share and unit 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 and unit computed using the two-class method (dollars in thousands):
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Basic and diluted income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
45,737 |
|
|
$ |
24,817 |
|
|
$ |
89,315 |
|
|
$ |
62,895 |
|
|
Less: dividends paid to preferred stockholders |
|
|
(2,588 |
) |
|
|
(2,588 |
) |
|
|
(5,176 |
) |
|
|
(5,176 |
) |
|
Less: income attributable to unvested restricted stock |
|
|
(250 |
) |
|
|
(345 |
) |
|
|
(522 |
) |
|
|
(728 |
) |
|
Income used in basic and diluted income per share from continuing operations |
|
|
42,899 |
|
|
|
21,884 |
|
|
|
83,617 |
|
|
|
56,991 |
|
|
Loss used in basic and diluted loss per share from discontinued operations |
|
|
— |
|
|
|
(7,653 |
) |
|
|
— |
|
|
|
(15,013 |
) |
|
Net income attributable to common stockholders used in basic and diluted income per share |
|
$ |
42,899 |
|
|
$ |
14,231 |
|
|
$ |
83,617 |
|
|
$ |
41,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding |
|
|
87,422,369 |
|
|
|
86,028,575 |
|
|
|
86,673,672 |
|
|
|
87,653,364 |
|
|
Less: Unvested weighted average shares of restricted stock |
|
|
(420,382 |
) |
|
|
(401,251 |
) |
|
|
(419,974 |
) |
|
|
(361,647 |
) |
|
Weighted average shares of common stock outstanding used in basic income per share |
|
|
87,001,987 |
|
|
|
85,627,324 |
|
|
|
86,253,698 |
|
|
|
87,291,718 |
|
|
Net income per share attributable to common stockholders - basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.49 |
|
|
$ |
0.26 |
|
|
$ |
0.97 |
|
|
$ |
0.65 |
|
|
Discontinued operations |
|
|
— |
|
|
|
(0.09 |
) |
|
|
— |
|
|
|
(0.15 |
) |
|
Net income per share attributable to common stockholders - basic |
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.97 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive weighted average shares of common stock outstanding: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsettled shares under open forward equity contracts |
|
|
772,040 |
|
|
|
— |
|
|
|
328,617 |
|
|
|
— |
|
|
Unvested market-based awards |
|
|
116,672 |
|
|
|
176,939 |
|
|
|
196,982 |
|
|
|
111,512 |
|
|
Weighted average shares of common stock outstanding used in diluted income per share |
|
|
87,890,699 |
|
|
|
85,804,263 |
|
|
|
86,779,297 |
|
|
|
87,403,230 |
|
|
Net income per share attributable to common stockholders - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.49 |
|
|
$ |
0.26 |
|
|
$ |
0.96 |
|
|
$ |
0.65 |
|
|
Discontinued operations |
|
|
— |
|
|
|
(0.09 |
) |
|
|
— |
|
|
|
(0.15 |
) |
|
Net income per share attributable to common stockholders - diluted |
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.96 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potentially dilutive shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested shares of restricted stock, less shares assumed repurchased at market |
|
|
160,606 |
|
|
|
84,847 |
|
|
|
191,215 |
|
|
|
67,796 |
|
|
(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 Company 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 months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, the Company's average stock price was below the conversion price, resulting in zero potentially dilutive shares related to the conversion spread for all periods.
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