Earnings Per Share

6 Months Ended

Jun. 30, 2023

11. Earnings Per Share

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the sum of the weighted average number of shares of common stock and any dilutive securities outstanding during the period. The Company’s potentially dilutive securities are share-based awards. The Company applies the treasury stock method to determine the dilutive weighted average number of shares of common stock outstanding based on the outstanding share-based awards. As of June 30, 2023 and December 31, 2022, the Company had 10 million preferred shares authorized at $0.00001, with zero shares issued and outstanding and aggregate liquidation preference of zero dollars.

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 Share	2023		2022		2023		2022
Net income	$	142	$	151	$	179	$	809

Weighted average shares of common stock outstanding (in thousands):
Basic	67,649		72,709		68,325		73,278
Dilutive effect of stock awards	957		1,618		1,316		2,052
Diluted	68,606		74,327		69,641		75,330

Earnings per common share
Basic	$	2.10	$	2.08	$	2.62	$	11.04
Diluted	$	2.07	$	2.03	$	2.57	$	10.74