Earnings Per Share

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023, the Company had 10 million preferred shares authorized at par value of $0.00001 per share, 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 March 31,
Computation of Earnings Per Share	2024		2023
Net income	$	181	$	37

Weighted average shares of common stock outstanding (in thousands):
Basic	64,629		69,008
Dilutive effect of stock awards	1,638		1,471
Diluted	66,267		70,479

Earnings per common share
Basic	$	2.80	$	0.54
Diluted	$	2.73	$	0.52