Net Income Per Share

12 Months Ended

Dec. 31, 2020

6. NET INCOME PER SHARE

As of December 31, 2020, 45,809,139 shares of AFG's common stock (par value $0.01) and warrants entitling holders to acquire up to 4,877,749 shares of new common stock at an exercise price of $16.67 per share were outstanding. For the three years ended December 31, 2020, 2019 and 2018, 34, 0 and 194 warrants were exercised, respectively, resulting in an issuance of 8, — and 194 shares of common stock, respectively.

On June 30, 2015, the Board of Directors of AFG authorized the establishment of a warrant repurchase program that permits the repurchase of up to $10 of warrants. On November 3, 2016, the Board of Directors of AFG authorized a $10 increase to the warrant repurchase program. For the years ended December 31, 2020 and 2019, AFG did not repurchase any warrants. As of December 31, 2020, AFG had repurchased 985,331 warrants at a total cost of $8 (average cost of $8.21 per warrant). The remaining aggregate authorization at December 31, 2020 was $12. In connection with the AMPS Exchange, AFG issued 824,307 of the repurchased warrants at a price of $9.72 per warrant on August 3, 2018. Refer to Note 1. Background and Business Description for further discussion of the AMPS Exchange.

The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share:


Year Ended December 31,	2020	2019	2018
Basic weighted average shares outstanding	46,147,062	45,954,908	45,665,883
Effect of potential dilutive shares(1):
Warrants	—	—	441,104
Stock options	—	—	—
Restricted stock units	—	—	77,572
Performance stock units (2)	—	—	375,276
Diluted weighted average shares outstanding	46,147,062	45,954,908	46,559,835
Anti-dilutive shares excluded from the above reconciliation
Stock options	16,121	16,667	16,667
Warrants	4,877,754	4,877,783	—
Restricted stock units	302,145	249,263	—
Performance stock units (2)	1,002,501	872,258	—

(1)For the years ended December 31, 2020 and 2019 , Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive.

(2)Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is

contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period.