Earnings Per Share

3 Months Ended

Mar. 31, 2022

Note 15. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. 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, performance shares and RSAs are reflected in diluted earnings per share by applying the treasury stock method.

Basic and diluted earnings per share are calculated as follows:



	Three Months Ended
	March 31,
(In millions, except per share data)	2022		2021
Net Income	$	2	$	5
Weighted-average common shares outstanding		82.3		85.4
Effect of dilutive securities:
RSUs⁽¹⁾		0.3		0.4
Stock options⁽²⁾		—		0.2
Weighted-average common shares outstanding - assuming dilution		82.6		86.0
Basic earnings per share	$	0.02	$	0.06
Diluted earnings per share	$	0.02	$	0.06

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(1)RSUs of 0.4 million shares for the three months ended March 31, 2022 were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. There were no such anti-dilutive RSUs for the three months ended March 31, 2021.

(2)Options to purchase 1.2 million shares for the three months ended March 31, 2022 were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. There were no such anti-dilutive options for the three months ended March 31, 2021.