Earnings per Share (EPS)

3 Months Ended

Mar. 31, 2022

Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.

For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted.

A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). Since the 2028 Convertible Notes were issued on March 1, 2022, there were approximately 5.5 million shares of potentially dilutive common stock for the three months ended March 31, 2022. These potentially dilutive shares were excluded from the computation of diluted EPS for the three months ended March 31, 2022, because to do so would have been anti-dilutive as the Company reported a net loss from continuing operations during the period. In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense related to the convertible debt.

The computation of diluted EPS excluded aggregate share-based compensation awards of approximately 1.2 million and 1.3 million for the three months ended March 31, 2022 and 2021, respectively, because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly.

The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.


	Three Months Ended March 31,
	2022		2021
	(In millions, except per share data)
EPS numerator:
Loss from continuing operations, net of income taxes	$	(119.8)	$	(77.7)
Less: Net (loss) income attributable to noncontrolling interests	(1.1)		0.4
Loss from continuing operations attributable to common stockholders	(118.7)		(78.1)


Loss from discontinued operations, net of income taxes	(0.8)		(2.0)


Net loss attributable to common stockholders	$	(119.5)	$	(80.1)

EPS denominator:


Weighted average shares outstanding — basic and diluted	136.2		98.4






Basic and diluted EPS attributable to common stockholders:
Loss from continuing operations	$	(0.87)	$	(0.79)
Loss from discontinued operations	(0.01)		(0.02)
Net loss attributable to common stockholders	$	(0.88)	$	(0.81)