Earnings Per Share

6 Months Ended

Jun. 30, 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 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 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 June 30,						Six months ended June 30,
(In millions, except per share data)	2020		2019		2020		2019
Basic income per share:
Net income available to common shareholders	$	313	$	201	$	434	$	683
Weighted average number of common shares outstanding - basic	245		265		246		272
Income per weighted average common share — basic	$	1.28	$	0.76	$	1.76	$	2.51

Diluted income per share:


Net income available to common shareholders	$	313	$	201	$	434	$	683
Weighted average number of common shares outstanding - basic	245		265		246		272
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	1		2		1		2
Weighted average number of common shares outstanding - dilutive	246		267		247		274
Income per weighted average common share — diluted	$	1.27	$	0.75	$	1.76	$	2.49

As of June 30, 2020 and 2019, the Company had an insignificant number of outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted income per share.