Earnings Per Share

3 Months Ended

Mar. 31, 2020

Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted income per share is computed in a manner consistent with that of basic income per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The outstanding non-qualified stock options, non-vested restricted stock units, market stock units, and relative performance stock units are not considered outstanding for purposes of computing basic income per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method. The 2048 Convertible Senior Notes are convertible, under certain circumstances, into the Company’s common stock, cash or combination thereof (at NRG's option). There is no dilutive effect for the 2048 Convertible Senior Notes due to the Company’s expectation to settle the liability in cash.

The reconciliation of NRG's basic and diluted income per share is shown in the following table:


	Three months ended March 31,
(In millions, except per share data)	2020		2019
Basic income per share:
Net income available to common shareholders	$	121	$	482
Weighted average number of common shares outstanding - basic	248		278
Income per weighted average common share — basic	$	0.49	$	1.73

Diluted income per share:


Net income available to common shareholders	$	121	$	482
Weighted average number of common shares outstanding - basic	248		278
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	1		2
Weighted average number of common shares outstanding - dilutive	249		280
Income per weighted average common share — diluted	$	0.49	$	1.72

As of March 31, 2020 and 2019 outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted income per share were not significant.