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Earnings Per Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings per Share
15. Earnings per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. In March 2021, the Company repurchased 3,700 thousand shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P., (“KKR”) a related party of the Company, for a total cost of $119. In August 2021, the Company repurchased 11,073 thousand shares of its common stock and 1,000 thousand shares of its preferred stock from affiliates of KKR for a total cost of $396. After giving effect to the transaction, KKR no longer held any equity interests in the Company.
The following table sets forth the computation of basic and diluted net income (loss) per common share (amounts in millions, except per share amounts):
Year Ended December 31,
Computation of Earnings Per Share202120202019
Net income from continuing operations$1,466 $309 $254 
Less: Net income (loss) attributable to non-controlling interests— 2 (4)
Less: Undistributed earnings from continuing operations attributable to participating stockholders8 3 2 
Less: Premium on retirement of preferred stock28 — — 
Net income from continuing operations attributable to Mr. Cooper common stockholders$1,430 $304 $256 
Net (loss) income from discontinued operations $(12)$(2)$16 
Less: Undistributed earnings from discontinued operations attributable to participating stockholders— — — 
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders$(12)$(2)$16 
Net income$1,454 $307 $270 
Less: Net income (loss) attributable to non-controlling interests— 2 (4)
Net income attributable to Mr. Cooper$1,454 $305 $274 
Less: Undistributed earnings attributable to participating stockholders8 3 2 
Less: Premium on retirement of preferred stock28 — — 
Net income attributable to common stockholders$1,418 $302 $272 
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$17.39 $3.33 $2.81 
Diluted$16.67 $3.22 $2.78 
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$(0.15)$(0.02)$0.18 
Diluted$(0.14)$(0.02)$0.17 
Earnings per common share attributable to Mr. Cooper:
Basic$17.24 $3.31 $2.99 
Diluted$16.53 $3.20 $2.95 
Weighted average shares of common stock outstanding (in thousands):
Basic82,247 91,312 91,035 
Dilutive effect of stock awards3,067 2,343 270 
Dilutive effect of participating securities492 839 839 
Diluted85,806 94,494 92,144