Earnings Per Share

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

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


	2021		2020		2019
Earnings:
Net income (numerator for basic and diluted calculations)	$	617	$	415	$	870
Shares:
Weighted average outstanding shares (denominator for basic calculations)	67.8		65.4		62.7
Equivalent shares from outstanding stock awards	0.5		0.4		1.2
Diluted shares (denominator for diluted calculations)	68.3		65.8		63.9
Earnings per share:
Basic	$	9.10	$	6.35	$	13.88
Diluted	9.04		6.31		13.62

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 awards, as the conditions necessary for their issuance have not been satisfied as of the end of the reporting period. Approximately 0.2 million, 0.4 million, and 0.2 million outstanding stock awards and approximately 0.3 million, 0.3 million and 0.3 million performance contingent awards were excluded from the calculation of common equivalent shares during 2021, 2020 and 2019, respectively.