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Earnings Per Share
 12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Earnings Per Share
13. Earnings Per Share

The following represents our basic and diluted EPS calculations:
 
Year ended December 31, 2018
(In millions, except per share data)
Class A
 
Class B
 
Class M-1
 
Class M-2
 
Class M-3
 
Class M-4
Net income – basic and diluted
$
857

 
$
157

 
$
18

 
$
5

 
$
5

 
$
11

 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
160.5

 
29.3

 
3.4

 
0.8

 
1.0

 
2.1

Dilutive effect of stock compensation plans
0.6

 
—

 
—

 
—

 
—

 
0.6

Diluted weighted average shares outstanding
161.1

 
29.3

 
3.4

 
0.8

 
1.0

 
2.7

 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
 
 
 
Basic
$
5.34

 
$
5.34

 
$
5.34

 
$
5.34

 
$
5.34

 
$
5.34

Diluted
$
5.32

 
$
5.34

 
$
5.34

 
$
5.31

 
$
5.31

 
$
4.11


 
Year ended December 31, 2017
(In millions, except per share data)
Class A
 
Class B
 
Class M-1
 
Class M-2
 
Class M-3
 
Class M-4
Net income – basic
$
749

 
$
567

 
$
24

 
$
4

 
$
5

 
$
9

Effect of stock compensation plans on allocated net income
18

 
—

 
—

 
—

 
—

 
—

Net income – diluted
$
767

 
$
567

 
$
24

 
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
107.7

 
81.6

 
3.4

 
0.6

 
0.7

 
1.3

Dilutive effect of stock compensation plans
3.3

 
—

 
—

 
0.3

 
0.5

 
1.6

Diluted weighted average shares outstanding
111.0

 
81.6

 
3.4

 
0.9

 
1.2

 
2.9

 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
 
 
 
Basic
$
6.95

 
$
6.95

 
$
6.95

 
$
6.95

 
$
6.95

 
$
6.95

Diluted
$
6.91

 
$
6.95

 
$
6.95

 
$
5.05

 
$
3.86

 
$
3.10


 
Year ended December 31, 2016
(In millions, except per share data)
Class A
 
Class B
 
Class M-1
Net income – basic
$
216

 
$
556

 
$
1

Effect of stock compensation plans on allocated net income
1

 
—

 
—

Net income – diluted
$
217

 
$
556

 
$
1

 
 
 
 
 
 
Basic weighted average shares outstanding
52.1

 
134.5

 
0.2

Dilutive effect of stock compensation plans
1.4

 
—

 
4.2

Diluted weighted average shares outstanding
53.5

 
134.5

 
4.4

 
 
 
 
 
 
Earnings per share
 
 
 
 
 
Basic
$
4.14

 
$
4.14

 
$
4.14

Diluted
$
4.04

 
$
4.14

 
$
0.20



We use the two-class method for allocating net income to each class of our common stock. Our Class M shares did not become eligible to participate in dividends until a return of investment (ROI) condition had been met for each class. Once eligible, each class of our common stock has equal dividend rights. In conjunction with our IPO in the fourth quarter of 2016, the ROI condition for Class M-1 was met. The ROI condition was met for Class M-2 on March 28, 2017, and for Class M-3 and Class M-4 on April 20, 2017. For purposes of calculating basic weighted average shares outstanding and the allocation of basic income, shares are deemed to be participating in earnings for only the portion of the period after the condition is met. For purposes of calculating diluted weighted average shares outstanding, shares are deemed dilutive as of the beginning of the period.

Dilutive shares are calculated using the treasury stock method. For Class A shares, this method takes into account shares that can be settled into Class A shares, net of a conversion price. The diluted EPS calculations for Class A shares excluded the following shares, RSUs and options:
 
Years ended December 31,
(In millions)
2018
 
2017
 
2016
Antidilutive shares, RSUs and options excluded from diluted EPS calculation
34.7

 
50.9

 
113.5

Shares, RSUs and options excluded from diluted EPS calculation as a performance condition had not been met
0.2

 
1.4

 
2.5

Total shares, RSUs and options excluded from diluted EPS calculation
34.9

 
52.3

 
116.0

 
 
 
 
 
 
Note: Shares, RSUs and options are as of year end.