Earnings per Share (EPS)

12 Months Ended

Dec. 31, 2021

Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the share-based compensation awards in its potentially dilutive securities. Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.

For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted. For further discussion of the Company’s share-based compensation awards, see Note 17. “Share-Based Compensation.”

The computation of diluted EPS excluded aggregate share-based compensation awards of less than 0.1 million for the year ended December 31, 2021, and approximately 2.2 million and 1.9 million for the years ended December 31, 2020 and 2019, respectively, because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly.

The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS:


	Year Ended December 31,
	2021		2020		2019
	(In millions, except per share data)
EPS numerator:
Income (loss) from continuing operations, net of income taxes	$	347.4	$	(1,859.8)	$	(188.3)

Less: Net income (loss) attributable to noncontrolling interests	11.3		(3.5)		26.2
Income (loss) from continuing operations attributable to common stockholders	336.1		(1,856.3)		(214.5)


Income (loss) from discontinued operations, net of income taxes	24.0		(14.0)		3.2


Net income (loss) attributable to common stockholders	$	360.1	$	(1,870.3)	$	(211.3)

EPS denominator:
Weighted average shares outstanding — basic	111.1		97.7		103.7
Impact of dilutive securities	0.9		—		—
Weighted average shares outstanding — diluted	112.0		97.7		103.7

Basic EPS attributable to common stockholders:
Income (loss) from continuing operations	$	3.03	$	(18.99)	$	(2.07)
Income (loss) from discontinued operations	0.21		(0.15)		0.03
Net income (loss) attributable to common stockholders	$	3.24	$	(19.14)	$	(2.04)

Diluted EPS attributable to common stockholders:
Income (loss) from continuing operations	$	3.00	$	(18.99)	$	(2.07)
Income (loss) from discontinued operations	0.22		(0.15)		0.03
Net income (loss) attributable to common stockholders	$	3.22	$	(19.14)	$	(2.04)