Earnings Per Share

6 Months Ended

Jun. 30, 2019

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings per share is computed in a manner consistent with that of basic income per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The outstanding non-qualified stock options, non-vested restricted stock units, market stock units, and relative performance stock units are not considered outstanding for purposes of computing basic income per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method. The 2048 Convertible Senior Notes are convertible, under certain circumstances, into the Company’s common stock, cash or combination thereof (at NRG's option). There is no dilutive effect for the 2048 Convertible Senior Notes due to the Company’s expectation to settle the liability in cash.

The reconciliation of NRG's basic and diluted income per share is shown in the following table:



	Three months ended June 30,				Six months ended June 30,
In millions, except per share data	2019		2018		2019		2018
Basic income per share attributable to NRG Energy, Inc;
Net income attributable to NRG Energy, Inc. common stockholders	$	201	$	72	$	683	$	351
Weighted average number of common shares outstanding - basic	265		310		272		314
Income per weighted average common share — basic	$	0.76	$	0.23	$	2.51	$	1.12

Diluted income per share attributable to NRG Energy, Inc;
Net income attributable to NRG Energy, Inc. available to common shareholders	$	201	$	72	$	683	351
Weighted average number of common shares outstanding - basic	265		310		272		314
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	2		4		2		4
Weighted average number of common shares outstanding - dilutive	267		314		274		318
Income per weighted average common share — diluted	$	0.75	$	0.23	$	2.49	$	1.10

The following table summarizes NRG’s outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted income per share:



	Three months ended June 30,		Six months ended June 30,
In millions of shares	2019	2018	2019	2018
Equity compensation plans	—	—	—	1