Net Earnings (Loss) per Share

9 Months Ended

Sep. 30, 2023

Net Earnings (Loss) per ShareBasic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under the two-class method, the Company attributes net income to common stock and other participating rights (including those with vested share-based awards). Basic net earnings per share is calculated by taking net income, less earnings allocated to participating rights, divided by the basic weighted-average common stock outstanding. Net loss per share is calculated by taking net loss divided by basic weighted-average common stock outstanding as participating rights do not share in losses. In accordance with the two-class method, diluted net earnings per share is calculated using the more dilutive impact of the treasury-stock method or from reducing net income for the earnings allocated to participating rights.

The following table sets forth the computation of net earnings (loss) per share on a basic and diluted basis pursuant to the two-class method for the periods indicated (in millions, except for share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Basic:
Net income (loss)	$	(32)	$	31	$	26	$	(77)
Less: net income attributable to participating rights	—		(1)		—		—
Net income (loss) attributable to common stockholders	$	(32)	$	30	$	26	$	(77)
Weighted-average common shares outstanding, basic	220,837,983		217,720,426		219,483,736		217,532,815
Net earnings (loss) per share, basic	$	(0.14)	$	0.13	$	0.12	$	(0.36)
Diluted:
Net income (loss)	$	(32)	$	31	$	26	$	(77)
Less: net income attributable to participating rights	—		(1)		—		—
Net income (loss) attributable to common stockholders	$	(32)	$	30	$	26	$	(77)
Weighted-average common shares outstanding, basic	220,837,983		217,720,426		219,483,736		217,532,815
Effect of dilutive potential common shares	—		2,158,514		1,155,147		—
Weighted-average common shares outstanding, diluted	220,837,983		219,878,940		220,638,883		217,532,815
Net earnings (loss) per share, diluted	$	(0.14)	$	0.13	$	0.12	$	(0.36)

Approximately 2,128,892 and 208,041 shares were excluded from the computation of diluted shares for the nine months ended September 30, 2023 and three months ended September 30, 2022, respectively, due to antidilutive effects. Due to the net loss incurred during the three months ended September 30, 2023 and nine months ended September 30, 2022, respectively, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive.