Income/(Loss) Per Share

9 Months Ended

Sep. 30, 2023

Basic income/(loss) per common share is computed by dividing net income/(loss) less cumulative dividends attributable to preferred stock by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the period are weighted for the portion of the period that they were outstanding. Diluted income/(loss) per share is computed in a manner consistent with that of basic income/(loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period when there is net income. The relative performance stock units, non-vested restricted stock units, and non-qualified stock options are not considered outstanding for purposes of computing basic income/(loss) per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method for periods when there is net income. The Convertible Senior Notes are convertible, under certain circumstances, into cash or combination of cash and Company’s common stock. The Company is including the potential share settlements, if any, in the denominator for purposes of computing diluted income per share under the if converted method for periods when there is net income. The potential shares settlements are calculated as the excess of the Company's conversion obligation over the aggregate principal amount (which will be settled in cash), divided by the average share price for the period. For each of the three and nine months ended September 30, 2023 and 2022, there was no dilutive effect for the Convertible Senior Notes since there were no potential share settlements for the periods.

NRG's basic and diluted income/(loss) per share is shown in the following table:


	Three months ended September 30,				Nine months ended September 30,
(In millions, except per share data)	2023		2022		2023		2022
Basic income/(loss) per share:
Net income/(loss)	$	343	$	67	$	(684)	$	2,316
Less: Cumulative dividends attributable to Series A Preferred Stock	17		—		38		—
Net income/(loss) available for common stockholders	$	326	$	67	$	(722)	$	2,316
Weighted average number of common shares outstanding - basic	230		235		230		238
Income/(loss) per weighted average common share — basic	$	1.42	$	0.29	$	(3.14)	$	9.73

Diluted income/(loss) per share:
Net income/(loss)	$	343	$	67	$	(684)	$	2,316
Less: Cumulative dividends attributable to Series A Preferred Stock	17		—		38		—
Net income/(loss) available for common stockholders	$	326	$	67	$	(722)	$	2,316
Weighted average number of common shares outstanding - basic	230		235		230		238
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	2		—		—		—
Weighted average number of common shares outstanding - dilutive	232		235		230		238
Income/(loss) per weighted average common share — diluted	$	1.41	$	0.29	$	(3.14)	$	9.73

For the nine months ended September 30, 2023, the Company had 6 million of outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company's diluted loss per share. For all other periods presented, 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.