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Earnings Per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share
11. 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 2021, the Company repurchased a total of 14.8 million shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”), a related party of the Company. In addition, in August 2021, the Company repurchased 1.0 million shares of its preferred stock from affiliates of KKR. After giving effect to these transactions, KKR no longer held any equity interests in the Company.
The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
Computation of Earnings Per Share2022202120222021
Net income from continuing operations$151 $427 $809 $986 
Less: Undistributed earnings from continuing operations attributable to participating stockholders— 4 — 9 
Net income from continuing operations attributable to Mr. Cooper common stockholders$151 $423 $809 $977 
Net income from discontinued operations$— $12 $— $14 
Less: Undistributed earnings from discontinued operations attributable to participating stockholders— — — — 
Net income from discontinued operations attributable to Mr. Cooper common stockholders$— $12 $— $14 
Net income$151 $439 $809 $1,000 
Less: Undistributed earnings attributable to participating stockholders— 4 — 9 
Net income attributable to common stockholders$151 $435 $809 $991 
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$2.08 $4.91 $11.04 $11.13 
Diluted$2.03 $4.72 $10.74 $10.65 
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$— $0.14 $— $0.16 
Diluted$— $0.13 $— $0.15 
Earnings per common share attributable to Mr. Cooper:
Basic$2.08 $5.05 $11.04 $11.29 
Diluted$2.03 $4.85 $10.74 $10.80 
Weighted average shares of common stock outstanding (in thousands):
Basic72,709 86,142 73,278 87,791 
Dilutive effect of stock awards1,618 2,664 2,052 3,123 
Dilutive effect of participating securities— 839 — 839 
Diluted74,327 89,645 75,330 91,753