Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2020

Earnings (Loss) 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 September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2020		2019		2020		2019
Basic earnings (loss) per common share
Net income (loss) attributable to XPO	$	93	$	130	$	(15)	$	312
Series A preferred stock dividends	—		(1)		(2)		(2)
Non-cash allocation of undistributed earnings	(9)		(12)		—		(28)
Net income (loss) attributable to common shares, basic	$	84	$	117	$	(17)	$	282

Basic weighted-average common shares	91		92		91		97
Basic earnings (loss) per share	$	0.93	$	1.27	$	(0.18)	$	2.91

Diluted earnings (loss) per common share
Net income (loss) attributable to common shares, diluted	$	84	$	117	$	(17)	$	282

Basic weighted-average common shares	91		92		91		97
Dilutive effect of non-participating stock-based awards	11		10		—		10
Diluted weighted-average common shares	102		102		91		107

Diluted earnings (loss) per share	$	0.83	$	1.14	$	(0.18)	$	2.63

Potential common shares excluded	10		10		21		10

Certain shares were not included in the computation of Diluted earnings (loss) per share because the effect was anti-dilutive.