Earnings Per Share

9 Months Ended

Sep. 30, 2021

The following table sets forth the computation of basic and diluted earnings per share on net income (in millions, except per share information):


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Earnings:
Net income (loss)	$	(22)	$	213	$	461	$	283
Shares:
Weighted average outstanding shares	68		68		68		65
Equivalent shares from outstanding stock awards	—		—		—		—
Denominator for diluted calculation	68		68		68		65
Earnings per share:
Basic	$	(0.32)	$	3.13	$	6.78	$	4.39
Diluted	$	(0.32)	$	3.12	$	6.74	$	4.36

As a result of the net loss for the three months ended September 30, 2021, the Company is required to use basic weighted average common shares outstanding of 68 million in the calculation of diluted loss per share, since the inclusion of shares for outstanding stock awards would have been anti-dilutive to the loss per share calculations.

The calculation of common equivalent shares does not include the impact of stock awards with a conversion price that exceeds the average stock price for the earnings period, as the result would be antidilutive. The calculation of common equivalent shares also excludes the impact of outstanding performance contingent shares, as the conditions necessary for their issuance have not been satisfied as of the end of the reporting period. Approximately 1.2 million and 1.1 million stock awards and approximately 0.5 million performance contingent shares were excluded from the calculation of common equivalent shares during the three and nine month periods ended September 30, 2021, respectively.