Earnings Per Share

6 Months Ended

Jun. 30, 2020

Note 16 — Earnings Per Share

Basic and diluted earnings per share are calculated by dividing net income attributable to Willis Towers Watson by the average number of ordinary shares outstanding during each period. The computation of diluted earnings per share reflects the potential dilution that could occur if dilutive securities and other contracts to issue shares were exercised or converted into shares or resulted in the issuance of shares that then shared in the net income of the Company.

At June 30, 2020 and 2019, there were 0.2 million and 0.4 million time-based share options outstanding, respectively. There were 0.3 million performance-based options outstanding at both June 30, 2020 and 2019, and 0.5 million restricted performance-based stock units outstanding at both June 30, 2020 and 2019. The Company’s restricted time-based stock units were immaterial at June 30, 2020 and 2019.

Basic and diluted earnings per share are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
Net income attributable to Willis Towers Watson	$	94		$	138	$	399		$	425

Basic average number of shares outstanding		129			130		130			130
Dilutive effect of potentially issuable shares		1			—		—			—
Diluted average number of shares outstanding		130			130		130			130

Basic earnings per share	$	0.73		$	1.06	$	3.08		$	3.27
Dilutive effect of potentially issuable shares		(0.01	)		—		(0.01	)		(0.01	)
Diluted earnings per share	$	0.72		$	1.06	$	3.07		$	3.26

There were no anti-dilutive options or restricted stock units for the three and six months ended June 30, 2020 and 2019.