Loss per share

9 Months Ended

Sep. 30, 2020

Basic loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted loss per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted loss per share for the three and nine month periods ended September 30, 2020 and 2019.


	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions, except per share amounts)	2020		2019		2020		2019
Numerator:
Basic and diluted:
Net loss attributable to Veoneer	$	(132)	$	(133)	$	(454)	$	(403)

Denominator:
Basic: Weighted average number of shares outstanding (in millions)	111.59		111.4		111.55		98.32
Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions)¹	111.59		111.4		111.55		98.32

Basic loss per share	$	(1.18)	$	(1.20)	$	(4.07)	$	(4.10)
Diluted loss per share	$	(1.18)	$	(1.20)	$	(4.07)	$	(4.10)

¹ Shares in the diluted loss per share calculation represent basic shares due to the net loss.

In periods when the Company has a net loss, equity incentive awards are excluded from the Company's calculation of earnings per share as their inclusion would have an anti-dilutive effect. The Company excluded equity incentive awards of 963,171 and 741,120 shares for the three and nine month periods ended September 30, 2020, respectively, and 295,526 and 285,975 for the three and nine month periods ended September 30, 2019, respectively, from the diluted loss per share calculations.

The Company may settle the conversion of the Notes in cash, shares of the Company's common stock or any combination thereof at its election. For the Notes, the number of shares of the Company's common stock issuable at the conversion price of $22.3125 per share would be 9,277,305 shares if the Company elected to settle the conversion wholly in shares. See Note 6 "Debt". Due to anti-dilutive effects, the Company excluded potential convertible shares due under the Notes of 9,277,305 for the three and nine month periods ended September 30, 2020, respectively, and 9,277,305 and 4,247,850 for the three and nine month periods ended September 30, 2019, respectively, from the diluted loss per share calculations.