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Note 13 - Earnings Per Share

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 13: EARNINGS PER SHARE

Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share computations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.

A reconciliation of the amounts used to calculate basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022 follows:

		*Three Months Ended*								*Six Months Ended*
		*June 30,*								*June 30,*
(in millions)		*2023*				*2022*				*2023*				*2022*
Net earnings		$	35			$	20			$	68			$	17
Less: Series B Preferred stock cash dividends			(1	)			(1	)			(2	)			(2	)
Less: Series C Preferred stock in-kind dividends			(2	)			(1	)			(3	)			(2	)
Less: Preferred stock deemed dividends			—				—				(1	)			(1	)
Less: Earnings attributable to Series C Preferred shareholders			(4	)			(2	)			(8	)			(2	)
Net earnings available to common shareholders - basic		$	28			$	16			$	54			$	10

Effect of dilutive securities:
Add back: Series B preferred stock cash and deemed dividends		$	1			$	1			$	2			$	—
Add back: Convertible Notes interest expense			1				—				2				—
Net earnings available to common shareholders - diluted		$	30			$	17			$	58			$	10

		*Three Months Ended*								*Six Months Ended*
		*June 30,*								*June 30,*
(in millions of shares)		*2023*				*2022*				*2023*				*2022*
Weighted average shares — basic			79.4				78.9				79.3				78.8
Effect of dilutive securities
Employee stock options			0.7				1.2				0.6				1.1
Unvested restricted stock units			0.9				0.6				0.8				0.5
Series B Preferred Stock			9.5				9.5				9.5				—
Convertible Notes			2.5				—				2.5				—
Weighted average shares — diluted			93.0				90.2				92.7				80.4

The computation of diluted earnings per share for the three and six months ended June 30, 2023 excluded the impact of (1) the assumed conversion of 1.1 million shares of Series C Preferred Stock, (2) the assumed exercise of 4.1 million outstanding employee stock options, and (3) for the six months ended June 30, 2023 the assumed vesting of 0.7 million unvested restricted stock units because the effects would have been anti-dilutive.

The computation of diluted earnings per share for the three and six months ended June 30, 2022 excluded the impact of (1) the assumed conversion of $25 million of Convertible Notes, (2) the assumed conversion of 1.1 million shares of Series C Preferred Stock and (3) the assumed exercise of 3.6 million outstanding employee stock options in each period because the effects would have been anti‐dilutive.

In addition, the computation of diluted earnings per share for the six months ended June 30, 2022 excluded the impact of the assumed conversion of 1.0 million shares of Series B Preferred Stock and the assumed vesting of 0.2 million unvested restricted stock units because the effects would have been anti‐dilutive.