EARNINGS (LOSS) PER SHARE OF COMMON STOCK

Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. As discussed above, FirstEnergy adopted ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" beginning January 1, 2017. For the three and nine months ended September 30, 2017, there were no material impacts to the basic or diluted earnings per share due to the new standard.

The following table reconciles basic and diluted earnings (loss) per share of common stock:



(In millions, except per share amounts)	For the Three Months Ended September 30				For the Nine Months Ended September 30
Reconciliation of Basic and Diluted Earnings (Loss) per Share of Common Stock	2017		2016		2017		2016

Net income (loss)	$	396	$	380	$	775	$	(381	)

Weighted average number of basic shares outstanding	444		425		444		425
Assumed exercise of dilutive stock options and awards⁽¹⁾	2		2		1		—
Weighted average number of diluted shares outstanding	446		427		445		425

Basic earnings (loss) per share of common stock	$	0.89	$	0.89	$	1.75	$	(0.90	)
Diluted earnings (loss) per share of common stock	$	0.89	$	0.89	$	1.74	$	(0.90	)

⁽¹⁾

For both the three and nine months ended September 30, 2017, and the three months ended September 30, 2016, one million shares were excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive. For the nine months ended September 30, 2016, three million shares were excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive as a result of the net loss.