Earnings Per Share

6 Months Ended

Jun. 30, 2020

Basic earnings per share ("EPS") amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding.

The information used to compute basic and diluted EPS attributable to the Company's common shareholders was as follows (shares in millions):


	Second quarter ended						Six months ended
	June 30,						June 30,
	2020		2019		2020		2019
Net income (loss) attributable to common shareholders:
Income (loss) from continuing operations attributable to common shareholders	$	(84)	$	(136)	$	69	$	(50)
Income (loss) attributable from discontinued operations	(12)		15		50		116
Net income (loss) attributable to common shareholders	(96)		(121)		119		66
Less: preferred stock dividends declared	—		—		(1)		(1)
Net income available to the Company's common shareholders - basic	(96)		(121)		118		65
Add: Interest expense related to convertible notes	—		3		—		6
Net income available to the Company's common shareholders - diluted	$	(96)	$	(118)	$	118	$	71

Average shares outstanding - basic	436		445		436		458
Effect of dilutive securities:
Stock options	—		—		—		—
Stock and performance awards	—		—		4		4
Convertible notes⁽¹⁾	—		—		—		—
Average shares outstanding - diluted	436		445		440		462

⁽¹⁾The convertible notes matured on October 15, 2019. No shares of the Company’s common stock were issued in connection with the maturity or the final conversion of the convertible notes. As of October 15, 2019, the calculation of average diluted shares outstanding ceased to include the approximately 15 million shares of common stock and the corresponding interest expense previously attributable to the convertible notes.

Common stock outstanding at June 30, 2020 and 2019 was 436 and 440, respectively. The decrease in common stock outstanding at June 30, 2020 was primarily due to the impact of 8 of share repurchases during the second half of 2019. As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases was not realized in EPS in the second quarter and six months ended June 30, 2019, as the share repurchases occurred at varying points during 2019.

The following shares were excluded from the calculation of average shares outstanding – diluted as their effect was anti-dilutive (shares in millions).


	Second quarter ended			Six months ended
	June 30,			June 30,
	2020	2019	2020	2019
Convertible notes	—	14	—	14
Stock options⁽¹⁾	3	3	3	3
Stock and performance awards	3	4	—	—

(1)The weighted average exercise price per share of options excluded from diluted EPS was $26.04 and $32.66 as of June 30, 2020 and June 30, 2019, respectively.