Earnings Per Share

9 Months Ended

Sep. 30, 2020

9. Earnings Per Share

The following represents our basic and diluted earnings per share (EPS) calculations, which are calculated using unrounded amounts:


	Three months ended September 30, 2020
(In millions, except per share data)	Class A
Net income available to Athene Holding Ltd. common shareholders – basic and diluted	$	622

Basic weighted average shares outstanding	193.1
Dilutive effect of stock compensation plans	4.0
Diluted weighted average shares outstanding	197.1

Earnings per share
Basic	$	3.22
Diluted	$	3.16


	Three months ended September 30, 2019
(In millions, except share and per share data)	Class A		Class B		Class M-1		Class M-2		Class M-3		Class M-4
Net income available to Athene Holding Ltd. common shareholders – basic and diluted	$	227	$	38	$	5	$	1	$	2	$	3

Basic weighted average shares outstanding	151.6		25.4		3.3		0.8		1.0		2.2
Dilutive effect of stock compensation plans	0.4		—		—		—		—		0.3
Diluted weighted average shares outstanding	152.0		25.4		3.3		0.8		1.0		2.5

Earnings per share
Basic	$	1.50	$	1.50	$	1.50	$	1.50	$	1.50	$	1.50
Diluted	$	1.50	$	1.50	$	1.50	$	1.50	$	1.50	$	1.29


	Nine months ended September 30, 2020
(In millions, except share and per share data)	Class A		Class B		Class M-1		Class M-2		Class M-3		Class M-4
Net income (loss) available to Athene Holding Ltd. common shareholders – basic and diluted	$	508	$	(98)	$	(13)	$	(3)	$	(4)	$	(9)

Basic weighted average shares outstanding	182.8		25.4		3.3		0.8		1.0		2.4
Dilutive effect of stock compensation plans	3.1		—		—		—		—		—
Diluted weighted average shares outstanding	185.9		25.4		3.3		0.8		1.0		2.4

Earnings (loss) per share
Basic	$	2.78	$	(3.87)	$	(3.87)	$	(3.87)	$	(3.87)	$	(3.87)
Diluted	$	2.73	$	(3.87)	$	(3.87)	$	(3.87)	$	(3.87)	$	(3.87)


	Nine months ended September 30, 2019
(In millions, except per share data)	Class A		Class B		Class M-1		Class M-2		Class M-3		Class M-4
Net income available to Athene Holding Ltd. common shareholders – basic and diluted	$	1,411	$	228	$	30	$	7	$	9	$	19

Basic weighted average shares outstanding	157.2		25.4		3.3		0.8		1.0		2.2
Dilutive effect of stock compensation plans	0.4		—		—		—		—		0.3
Diluted weighted average shares outstanding	157.6		25.4		3.3		0.8		1.0		2.5

Earnings per share
Basic	$	8.97	$	8.97	$	8.97	$	8.97	$	8.97	$	8.97
Diluted	$	8.95	$	8.97	$	8.97	$	8.97	$	8.97	$	7.77

During the first quarter of 2020, as a result of the closing of the share transaction discussed further in Note 11 – Related Parties, we converted outstanding Class B shares to Class A shares and Class M shares were converted to Class A shares and warrants. As a result, the EPS calculation for the nine months ended September 30, 2020 allocates all net income for the second and third quarters to Class A shares. For the first quarter, the EPS calculation used only the weighted average shares for the first quarter to allocate first quarter net income for Class B and Class M shares; however, for Class B and Class M shares, the weighted average shares outstanding represent only that period of time that the shares were outstanding. The warrants issued as part of the conversion of the Class M shares are evaluated for dilution within the dilutive effect of stock compensation plans.

We use the two-class method for allocating net income available to Athene Holding Ltd. common shareholders to each class of our common stock. 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 2.8 million and 32.0 million shares, restricted stock units, options and warrants as of September 30, 2020 and 2019, respectively.