(Loss)/Earnings Per Share

9 Months Ended

Sep. 30, 2020

(Loss)/earnings per common share ("EPS") is computed by dividing net (loss)/income by the weighted average number of common shares outstanding during the period on a basic and diluted basis.

Our potentially dilutive securities include potential common shares related to our stock options and restricted stock units ("RSU") granted in connection with the Livent Plan and FMC Plan. See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information. Diluted (loss)/earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. Because we intend to settle in cash the principal outstanding under our 2025 Notes, we use the treasury stock method when calculating their potential dilutive effect, if any.

(Loss)/earnings applicable to common stock and common stock shares used in the calculation of basic and diluted (loss)/earnings per share are as follows:


(in Millions, Except Share and Per Share Data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:


Net (loss)/income	$	(11.8)	$	18.0	$	(13.9)	$	50.4



Denominator:
Weighted average common shares outstanding - basic	146.3		146.0		146.2		146.0

Incremental weighted average common shares - FMC Plan	—		0.5		—		0.4

Weighted average common shares outstanding - diluted	146.3		146.5		146.2		146.4

Basic (loss)/earnings per common share:


Net (loss)/income per weighted average share - basic	$	(0.08)	$	0.12	$	(0.10)	$	0.35
Diluted (loss)/earnings per common share:


Net (loss)/income per weighted average share - diluted	$	(0.08)	$	0.12	$	(0.10)	$	0.34

Anti-dilutive stock options

For the three and nine months ended September 30, 2020, options to purchase 1,835,476 and 1,904,010 shares of our common stock at an average exercise price of $12.59 and $12.58 per share, respectively, were anti-dilutive and not included in the computation of diluted (loss)/earnings per share because the exercise price of the options was greater than the average market price of the common stock for the three and nine months ended September 30, 2020. For the three and nine months ended September 30, 2019, options to purchase 1,547,070 and 1,006,532 shares of our common stock at an average exercise price of $12.97 and $15.21 per share, respectively, were anti-dilutive and not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common stock for the three and nine months ended September 30, 2019.