Earnings Per Share

6 Months Ended

Jun. 30, 2021

The following table sets forth the computation of basic and diluted earnings per share on net income (in millions, except per share information):


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Earnings:
Net income	$	344	$	158	$	483	$	70
Shares:
Weighted average outstanding shares	68		63		68		63
Equivalent shares from outstanding stock options	1		1		1		1
Denominator for diluted calculation	69		64		69		64
Earnings per share:
Basic	$	5.06	$	2.49	$	7.11	$	1.12
Diluted	$	5.02	$	2.48	$	7.06	$	1.11

The calculation of common equivalent shares does not include the impact of stock awards with a conversion price that exceeds the average stock price for the earnings period, as the result would be antidilutive. The calculation of common equivalent shares also excludes the impact of outstanding performance contingent shares, as the conditions necessary for their issuance have not been satisfied as of the end of the reporting period. Approximately 0.9 million and 1.3 million stock awards and approximately 0.5 million performance contingent shares were excluded from the calculation of common equivalent shares during the three and six month periods ended June 30, 2021, respectively.