(Loss) Earnings Per Share

12 Months Ended

Dec. 31, 2023

(LOSS) EARNINGS PER SHARE

Basic (loss) earnings per share is calculated by dividing the applicable (loss) income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method, except for the 2028 Convertible Notes and 2025 Convertible Notes, which are calculated using the if-converted method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company and the assumed conversion impact of convertible notes. The Company will settle any convertible note conversions through a combination settlement by satisfying the principal amount outstanding with cash and any convertible note conversion value in excess of the principal amount in cash or shares of the Company’s common stock or any combination thereof. As the Company will settle the principal amount of convertible notes in cash upon conversion, the convertible notes only have an impact on the Company's diluted earnings per share when the average share price of the Company’s common stock exceeds the conversion price, in any applicable period. See the computation of earnings per share below for the dilutive impact of the convertible notes for the years ended December 31, 2023, 2022 and 2021.

In connection with the offering of the 2025 Convertible Notes, the Company entered into Capped Calls, which are intended to reduce or offset the potential dilution from shares of common stock issued upon conversion. The Company completed a partial unwind of the Capped Calls in connection with the Notes Exchanges. Refer to Note 16 for further discussion of the Capped Calls.

The impact of the remaining Capped Calls is not included when calculating potentially dilutive shares since their effect is anti-dilutive. The Capped Calls will mitigate dilution for the conversion of the remaining 2025 Convertible Notes up to the Company’s common stock price of $23.79. If the remaining 2025 Convertible Notes are converted at a price higher than $23.79 per share, the Capped Calls will no longer mitigate dilution from the conversion of the remaining 2025 Convertible Notes.

The table below presents the computation of basic and diluted (loss) earnings per share ($ and shares in millions, except per share amounts):


	Year Ended December 31,
		2023		2022		2021
Numerator:
(Loss) income from continuing operations, net of tax		$	(100.2)	$	238.0	$	263.5
Income from discontinued operations, net of tax		—		5.1		77.0
Net (loss) income		$	(100.2)	$	243.1	$	340.5

Denominator:
Weighted-average common shares outstanding used in basic earnings per share		166.9		162.9		161.2
Incremental common shares from:
Assumed exercise of dilutive options and vesting of dilutive restricted stock units and performance stock units		—		3.2		4.4
Assumed conversion of 2025 Convertible Notes		—		11.5		12.0
Weighted average common shares outstanding used in diluted earnings per share		166.9		177.6		177.6

(Loss) earnings per share:
(Loss) earnings from continuing operations - basic		$	(0.60)	$	1.46	$	1.63
(Loss) earnings from continuing operations - diluted		$	(0.60)	$	1.34	$	1.48

Earnings from discontinued operations - basic		$	—	$	0.03	$	0.48
Earnings from discontinued operations - diluted		$	—	$	0.03	$	0.43

(Loss) earnings - basic		$	(0.60)	$	1.49	$	2.11
(Loss) earnings - diluted		$	(0.60)	$	1.37	$	1.92	*
* Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding.

For the years ended December 31, 2023, 2022 and 2021, the following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions):


	Year Ended December 31,
		2023	2022	2021
Stock-based awards		4.4	1.5	1.2
2025 Convertible Notes		6.6	—	—
2028 Convertible Notes		3.7	—	—
Total		14.7	1.5	1.2

For the year ended December 31, 2023, the Company did not include 2.2 million shares of outstanding securities nor 6.6 million shares for the potential conversion of senior convertible notes in the computation of diluted earnings per share because the Company incurred a net loss from operations.

For the years ended December 31, 2023, 2022 and 2021, 5.9 million, 1.5 million and 1.2 million of shares, respectively, were not considered in the computation of diluted earnings per share because the securities exercise price, the securities total expected proceeds under the treasury stock method, or the convertible senior notes conversion price were greater than the average market price of common shares during the applicable year.