Income Per Share

12 Months Ended

Dec. 31, 2021

Basic income 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 income 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.

Dilutive effect for equity compensation and other equity instruments — The outstanding relative performance stock units, non-vested restricted stock units, market stock units and non-qualified stock options 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. As of December 31, 2021, 2020 and 2019, the Convertible Senior Notes were convertible, under certain circumstances, into the Company’s common stock, cash or combination thereof (at NRG's option). There was no dilutive effect for the Convertible Senior Notes due to the Company’s expectation, as of such dates, to settle the liability in cash. On February 22, 2022, the Company irrevocably elected to eliminate the right to settle conversions only in shares of the Company's common stock, such that any conversion after such date will be settled in cash or a combination of cash and the Company's common stock.

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


	Year Ended December 31,
(In millions, except per share amounts)	2021		2020		2019
Basic income per share attributable to NRG Energy, Inc;
Net income attributable to NRG Energy, Inc. common stockholders	$	2,187	$	510	$	4,438



Weighted average number of common shares outstanding-basic	245		245		262
Income per weighted average common share — basic	$	8.93	$	2.08	$	16.94
Diluted income per share attributable to NRG Energy, Inc;
Net income attributable to NRG Energy, Inc. common stockholders	$	2,187	$	510	$	4,438
Weighted average number of common shares outstanding-basic	245		245		262
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	—		1		2
Weighted average number of common shares outstanding-diluted	245		246		264
Income per weighted average common share — diluted	$	8.93	$	2.07	$	16.81

As of December 31, 2021, 2020 and 2019 the Company had an insignificant number of outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted income per share.