Earnings Per Share (Notes)

9 Months Ended

Sep. 30, 2020

11. EARNINGS (LOSS) PER SHARE (EPS)

We present EPS using the two-class method. This method allocates undistributed earnings between common shares and non-vested share based payment awards that entitle the holder to non-forfeitable dividend rights. Our participating securities include non-vested restricted stock units.

The following table sets forth the computation of our basic and diluted EPS available to shareholders of common stock (excluding participating securities):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(in millions, except per share data)
Numerator
Net income (loss) attributable to AAM	$	117.2	$	(124.2)	$	(597.3)	$	(30.1)
Less: Net income attributable to participating securities	(5.1)		—		—		—


Net income (loss) attributable to common shareholders - Basic and Dilutive	$	112.1	$	(124.2)	$	(597.3)	$	(30.1)

Denominators
Basic common shares outstanding -
Weighted-average shares outstanding	118.4		115.8		117.7		115.6
Less: Participating securities	(5.1)		(3.3)		(4.7)		(3.3)
Weighted-average common shares outstanding	113.3		112.5		113.0		112.3

Effect of dilutive securities -
Dilutive stock-based compensation	—		—		—		—

Diluted shares outstanding -
Adjusted weighted-average shares after assumed conversions	113.3		112.5		113.0		112.3

Basic EPS	$	0.99	$	(1.10)	$	(5.28)	$	(0.27)

Diluted EPS	$	0.99	$	(1.10)	$	(5.28)	$	(0.27)