10. Earnings (Loss) per Share

Pursuant to our Plan of Reorganization, all shares of our common stock outstanding prior to the Effective Date were canceled, and the issuance of 485 million new shares of reorganized Calpine Corporation common stock was authorized to resolve allowed unsecured claims. A portion of the 485 million authorized shares was immediately distributed, and the remainder was reserved for distribution to holders of certain disputed claims that, although allowed as of the Effective Date, were unresolved. In June 2011, we settled the largest remaining claim outstanding and began the process of distributing the balance of the reserved shares, which are now fully distributed, pursuant to our Plan of Reorganization. Accordingly, although the reserved shares were not issued and outstanding for the balance of the periods presented, all conditions of distribution had been met for these reserved shares as of the Effective Date, and such shares are considered issued and are included in our calculation of weighted average shares outstanding. We also include restricted stock units for which no future service is required as a condition to the delivery of the underlying common stock in our calculation of weighted average shares outstanding.

As we incurred a net loss for the nine months ended September 30, 2011, diluted loss per share for this period is computed on the same basis as basic loss per share, as the inclusion of any other potential shares outstanding would be anti-dilutive.

Reconciliations of the amounts used in the basic and diluted earnings per common share computations for the three and nine months ended September 30, 2011 and 2010, are:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(shares in thousands)
Diluted weighted average shares calculation:
Weighted average shares outstanding (basic)		486,420		486,088		486,363		486,023
Share-based awards		2,642		1,355		—		1,176
Weighted average shares outstanding (diluted)		489,062		487,443		486,363		487,199

We excluded the following potentially dilutive securities from our calculation of weighted average shares outstanding from diluted earnings per common share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(shares in thousands)
Share-based awards		12,696		14,625		15,202		14,193