Net Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2023

Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under the two-class method, the Company attributes net income to common stock and other participating rights (including those with vested share-based awards). Basic net earnings per share is calculated by taking net income, less earnings allocated to participating rights, divided by the basic weighted-average common stock outstanding. Net loss per share is calculated by taking net loss divided by basic weighted-average common stock outstanding as participating rights do not share in losses. In accordance with the two-class method, diluted net earnings per share is calculated using the more dilutive impact of the treasury-stock method or from reducing net income for the earnings allocated to participating rights.

The following table sets forth the computation of net earnings (loss) per share on a basic and diluted basis pursuant to the two-class method for the periods indicated (in millions, except for share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic:
Net income (loss)	$	71	$	13	$	58	$	(108)
Less: net income attributable to participating rights	(2)		—		(2)		—
Net income (loss) attributable to common stockholders	$	69	$	13	$	56	$	(108)
Weighted-average common shares outstanding, basic	219,402,647		217,602,480		218,792,850		217,438,904
Net earnings (loss) per share, basic	$	0.32	$	0.06	$	0.26	$	(0.49)
Diluted:
Net income (loss)	$	71	$	13	$	58	$	(108)
Less: net income attributable to participating rights	(2)		—		(2)		—
Net income (loss) attributable to common stockholders	$	69	$	13	$	56	$	(108)
Weighted-average common shares outstanding, basic	219,402,647		217,602,480		218,792,850		217,438,904
Effect of dilutive potential common shares	1,023,012		1,334,065		1,430,423		—
Weighted-average common shares outstanding, diluted	220,425,659		218,936,545		220,223,273		217,438,904
Net earnings (loss) per share, diluted	$	0.31	$	0.06	$	0.26	$	(0.49)

Approximately 2,886,151 and 2,264,024 shares were excluded from the computation of diluted shares for the three and six months ended June 30, 2023, respectively, due to antidilutive effects. Approximately 2,284,417 shares were excluded from the computation of diluted shares for the three months ended June 30, 2022 due to antidilutive effects. Due to the net loss incurred during the six months ended June 30, 2022, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive.