Earnings per Share

3 Months Ended

Dec. 31, 2022

The Company utilizes the two-class method to report earnings per share. Basic earnings per share is computed by dividing net income available to each class of stock by the weighted average number of outstanding common shares for each class of stock. Diluted earnings per share is computed by dividing net income available to each class of stock by the weighted average number of outstanding common shares, plus dilutive potential common shares, which is calculated using the treasury-stock method. The potentially dilutive common shares did not have a dilutive effect on the Company’s EPS calculation for the three months ended December 31, 2022 and 2021, respectively.

The following table sets forth the calculation of basic and diluted net income per common share under the two-class method for the three months ended December 31, 2022 and 2021 (in millions, except share amounts, which are reflected in thousands, and per share data):


	Three Months Ended December 31,
	2022				2021
	Class A		Class B		Class A		Class B
Basic and Diluted EPS:
Numerator
Net income attributable to Warner Music Group Corp.	$	34	$	88	$	47	$	140
Less: Net income attributable to participating securities	(2)		—		(2)		—
Net income attributable to common stockholders	$	32	$	88	$	45	$	140
Denominator
Weighted average shares outstanding	137,424		377,650		123,969		390,952
Basic and Diluted EPS	$	0.23	$	0.23	$	0.36	$	0.36