Earnings Per Share

9 Months Ended

Sep. 30, 2020

Note 17. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of stock options, RSUs and performance share units are reflected in diluted earnings per share by applying the treasury stock method.

A reconciliation of the amounts included in the computation of basic earnings per share from continuing operations and diluted earnings per share from continuing operations is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,

(In millions, except per share data)	2020		2019		2020		2019
(Loss) income from continuing operations	$	(21)	$	8	$	20	$	103
Weighted-average common shares outstanding		132.0		135.8		132.9		135.9
Effect of dilutive securities:
RSUs⁽¹⁾		—		0.3		0.1		0.3
Stock options^(1),(2)		—		0.3		—		0.3
Weighted-average common shares outstanding—assuming dilution		132.0		136.5		133.1		136.5
Basic (loss) earnings per share from continuing operations	$	(0.17)	$	0.06	$	0.14	$	0.76
Diluted (loss) earnings per share from continuing operations	$	(0.17)	$	0.06	$	0.14	$	0.75

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(1)Securities are not included in the table in periods when antidilutive. For the three months ended September 30, 2020, weighted average potentially dilutive shares from RSUs of 0.2 million and weighted average potentially dilutive shares from stock options of 0.1 million were excluded from the dilutive (loss) earnings per share calculation due to the antidilutive effect such shares would have had on net loss per common share.

(2)Options to purchase 1.4 million shares for the three months ended September 30, 2020, and 1.4 million and 0.5 million shares for the nine months ended September 30, 2020, and 2019, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. There were an insignificant amount of options that would have been anti-dilutive in the three months ended September 30, 2019.