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Earnings Per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
NOTE 16. Earnings Per Share

The Company uses the two-class method in computing basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income attributable to Visteon, after deducting undistributed income allocated to participating securities, by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common and potential dilutive common shares outstanding after deducting undistributed income allocated to participating securities. Performance based share units are considered contingently issuable shares, and are included in the computation of diluted earnings per share based on the number of shares that would be issuable if the reporting date were the end of the contingency period and if the result would be dilutive. The table below provides details underlying the calculations of basic and diluted (loss) earnings per share:
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2014
 
2013
 
2014
 
2013
 
(In Millions, Except Per Share Amounts)
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
8

 
$
45

 
$
32

 
$
177

Loss from discontinued operations
(29
)
 
(2
)
 
(189
)
 
—

Net (loss) income attributable to Visteon Corporation
$
(21
)
 
$
43

 
$
(157
)
 
$
177

Denominator:
 
 
 
 
 
 
 
Average common stock outstanding - basic
44.0

 
49.4

 
46.2

 
50.4

Dilutive effect of warrants and performance stock units
1.4

 
1.0

 
1.3

 
1.1

Diluted shares
45.4

 
50.4

 
47.5

 
51.5

 
 
 
 
 
 
 
 
Basic and Diluted (Loss) Earnings Per Share Data:
 
 
 
 
 
 
 
Basic (loss) earnings per share attributable to Visteon:
 
 
 
 
 
 
 
Continuing operations
$
0.18

 
$
0.91

 
$
0.69

 
$
3.51

Discontinued operations
(0.66
)
 
(0.04
)
 
(4.09
)
 
—

Basic (loss) earnings per share attributable to Visteon
$
(0.48
)
 
$
0.87

 
$
(3.40
)
 
$
3.51

Diluted (loss) earnings per share attributable to Visteon:
 
 
 
 
 
 
 
Continuing operations
$
0.18

 
$
0.89

 
$
0.67

 
$
3.44

Discontinued operations
(0.64
)
 
(0.04
)
 
(3.98
)
 
—

Diluted (loss) earnings per share attributable to Visteon
$
(0.46
)
 
$
0.85

 
$
(3.31
)
 
$
3.44


The effect of certain common stock equivalents including warrants, performance-based share units, and stock options were excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive, summarized
below. All common stock equivalents were dilutive in the three and nine months ended September 30, 2014.
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2013
 
2013
 
(In Millions, Except Per Share Amounts)
Number of stock options
0.2
 
0.2
Exercise price
$
44.55

-
$
74.08

 
$
44.55

-
$
74.08