EARNINGS PER SHARE OF COMMON STOCK

12 Months Ended

Dec. 31, 2023

EPS is calculated by dividing earnings attributable to FE by the weighted average number of common shares outstanding.

Basic EPS is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised.

Diluted EPS reflects the dilutive effect of potential common shares from share-based awards and convertible securities. The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period. The dilutive effect of the 2026 Convertible Notes, as further discussed in Note 11, "Capitalization" under Long-term debt and other long-term obligations, is computed using the if-converted method.

The following table reconciles basic and diluted EPS attributable to FE:


	For the Years Ended December 31,
Reconciliation of Basic and Diluted EPS of Common Stock	2023		2022		2021
(In millions, except per share amounts)
Earnings Attributable to FE - continuing operations	$	1,123	$	406	$	1,239
Earnings Attributable to FE - discontinued operations, net of tax	(21)		—		44
Earnings Attributable to FE	$	1,102	$	406	$	1,283


Share Count information:
Weighted average number of basic shares outstanding	573		571		545
Assumed exercise of dilutive share-based awards	1		1		1
Weighted average number of diluted shares outstanding	574		572		546

EPS Attributable to FE:
Income from continuing operations, basic	$	1.96	$	0.71	$	2.27
Discontinued operations, basic	(0.04)		—		0.08
Basic EPS	$	1.92	$	0.71	$	2.35

Income from continuing operations, diluted	$	1.96	$	0.71	$	2.27
Discontinued operations, diluted	(0.04)		—		0.08
Diluted EPS	$	1.92	$	0.71	$	2.35

For the years ended December 31, 2023, 2022 and 2021, there was no material amount of shares excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive.

The dilutive effect of the 2026 Convertible Notes is limited to the conversion obligation in excess of the aggregate principal amount of the 2026 Convertible Notes being converted. For the year ended December 31, 2023, there was no dilutive effect resulting from the 2026 Convertible Notes as the average market price of FE shares of common stock was below the initial conversion price of $46.81 per share. See Note 11, "Capitalization" for additional details on the 2026 Convertible Notes that were issued during the second quarter of 2023.