Net Income Per Share

12 Months Ended

Dec. 31, 2021

15. NET INCOME PER SHARE

As of December 31, 2021, 46,304,139 shares of AFG's common stock (par value $0.01) and warrants entitling holders to acquire up to 4,877,617 shares of new common stock at an exercise price of $16.67 per share were issued and outstanding. Common shares outstanding increased by 495,000, during the year ended December 31, 2021, primarily due to settlements of employee restricted and performance stock units. For the three years ended December 31, 2021, 2020 and 2019, 132, 34 and — warrants were exercised, respectively, resulting in an issuance of 4, 8 and 0 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. The remaining aggregate authorization at December 31, 2021 was $12. For the years ended December 31, 2021 and 2020, AFG did not repurchase any warrants.

The following table provides a reconciliation of net income attributable to common stockholders to the numerator in the basic and diluted earnings per share calculation, together with the resulting earnings per share amounts:


Year ended December 31,	2021		2020		2019
Net income (loss) attributable to common stockholders	(17)		(437)		(216)
Adjustment to redemption value (ASC 480)	(12)		—		—
Numerator of basic and diluted EPS	(28)		(437)		(216)
Per Share:
Basic	$	(0.61)	$	(9.47)	$	(4.69)
Diluted	$	(0.61)	$	(9.47)	$	(4.69)

The denominator of the basic earnings per share computation represents the weighted average common shares outstanding plus vested restricted stock units (together, "Basic Weighted Average Shares Outstanding"). The denominator of diluted earnings per share adjusts the basic weighted average shares outstanding for all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants, unvested restricted stock units and performance stock units granted under existing compensation plans.

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,	2021	2020	2019
Basic weighted average shares outstanding	46,535,001	46,147,062	45,954,908
Effect of potential dilutive shares (1):
Warrants	—	—	—
Stock options	—	—	—
Restricted stock units	—	—	—
Performance stock units (2)	—	—	—
Diluted weighted average shares outstanding	46,535,001	46,147,062	45,954,908
Anti-dilutive shares excluded from the above reconciliation
Warrants	4,877,653	4,877,754	4,877,783
Stock options	—	16,121	16,667
Restricted stock units	475,333	302,145	249,263
Performance stock units (2)	700,915	1,002,501	872,258

(1)For the years ended years ended December 31, 2021, 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.