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Earnings Per Share
 3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings per Share
We compute basic and diluted earnings per share using the two-class method, which allocates earnings to participating securities. The participating securities consist of our Series A Convertible Perpetual Preferred Stock. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Losses are not allocated to the preferred shares.
The computations of basic and diluted earnings per share were as follows:
 
 
Three Months Ended March 31,
(In millions, except per share data)
 
2020
 
2019
Basic earnings per common share
 
 
 
 
Net income attributable to XPO
 
$
23

 
$
47

Series A preferred stock dividends
 
(1
)
 
(1
)
Non-cash allocation of undistributed earnings
 
(1
)
 
(3
)
Net income attributable to common shares, basic
 
$
21

 
$
43

 
 
 
 
 
Basic weighted-average common shares
 
92

 
107

Basic earnings per share
 
$
0.23

 
$
0.40

 
 
 
 
 
Diluted earnings per common share
 
 
 
 
Net income attributable to common shares, diluted
 
$
21

 
$
43

 
 
 
 
 
Basic weighted-average common shares
 
92

 
107

Dilutive effect of non-participating stock-based awards and equity forward
 
11

 
10

Diluted weighted-average common shares
 
103

 
117

 
 
 
 
 
Diluted earnings per share
 
$
0.20

 
$
0.37

 
 
 
 
 
Potential common shares excluded
 
10

 
10


Certain shares were not included in the computation of diluted earnings per share because the effect was anti-dilutive.