ASC 260, "Earnings per share" requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity.

The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock.


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Basic Earnings
Net income	$	183,030	$	60,392	$	269,219	$	186,418
Less: Preferred dividends	(3,068)		(3,126)		(9,204)		(9,896)
Net income available to common stockholders	$	179,962	$	57,266	$	260,015	$	176,522
Less: Dividends on participating securities	(898)		(874)		(2,698)		(2,570)
Basic Earnings	$	179,064	$	56,392	$	257,317	$	173,952

Diluted Earnings
Basic Earnings	$	179,064	$	56,392	$	257,317	$	173,952
Add: Dividends on participating securities	898		874		2,698		2,570
Add: Interest expense on Convertible Notes	5,684		8,277		20,608		24,783
Diluted Earnings	$	185,646	$	65,543	$	280,623	$	201,305

Number of Shares:
Basic weighted-average shares of common stock outstanding	140,594,987		139,891,777		140,513,957		139,860,882
Diluted weighted-average shares of common stock outstanding	164,350,132		170,884,172		169,252,602		170,836,682

Earnings Per Share Attributable to Common Stockholders
Basic	$	1.27	$	0.40	$	1.83	$	1.24
Diluted	$	1.13	$	0.38	$	1.66	$	1.18

The dilutive effect to earnings per share is determined using the "if-converted" method whereby interest expense on the outstanding Convertible Notes is added back to the diluted earnings per share numerator and all of the potentially dilutive shares are included in the diluted earnings per share denominator. For the three and nine months ended September 30, 2022, 21,187,719 and 26,057,847, weighted-average potentially issuable shares with respect to the Convertible Notes, respectively, were included in the dilutive earnings per share denominator. For the three and nine months ended September 30, 2021, 28,533,271 weighted-average potentially issuable shares with respect to the Convertible Notes were included in the dilutive earnings per share denominator. Refer to "Note 10 - Convertible Senior Notes, Net" for further discussion.