Earnings Per Share

9 Months Ended

Sep. 30, 2024

Note 18. Earnings Per Share

For the three and nine months ended September 30, 2024, as well as the three months ended September 30, 2023, basic earnings per share ("EPS") is computed using the weighted-average number of common shares outstanding during the period.

For the nine months ended September 30, 2023, basic earnings per share was calculated using the two-class method because our Series A Preferred Stock was considered a participating security prior to its conversion into Common Stock and cancellation pursuant to the Transaction. The two-class method requires an allocation of earnings to all securities that participate in dividends with common shares, which included our Series A Preferred Stock, to the extent that each such security may share in the entity’s earnings. Basic earnings per share are then calculated by dividing undistributed earnings allocated to common stock by the weighted average number of common shares outstanding for the period.

Diluted earnings per share for the three and nine months ended September 30, 2024, as well as the three months ended September 30, 2023, is calculated based on the weighted-average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method. Diluted earnings per share for the nine months ended September 30, 2023 is calculated using the more dilutive of the two-class or if-converted methods. The two-class method uses net income available to common shareholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income and assumes conversion of all potential shares including the participating securities.

The details of the EPS calculations for the three and nine months ended September 30, 2024 and 2023 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in millions except per share)
Basic earnings per share:
Net income	$	52	$	57	$	182	$	209
Less: preferred stock dividend	—		—		—		(80)
Less: preferred stock deemed dividends	—		—		—		(232)


Net income (loss) available to common shareholders	$	52	$	57	$	182	$	(103)
Weighted average common shares outstanding - Basic	217,283,749		250,888,716		226,057,803		141,745,701
EPS – Basic	$	0.24	$	0.23	$	0.80	$	(0.73)

Diluted earnings per share:
Method used:							Two-class
Weighted average common shares outstanding - Basic	217,283,749		250,888,716		226,057,803		141,745,701
Dilutive effect of unvested RSUs and other contingently issuable shares	1,119,932		1,493,003		1,591,944		—

Weighted average common shares outstanding – Diluted	218,403,681		252,381,719		227,649,747		141,745,701
EPS – Diluted	$	0.24	$	0.23	$	0.80	$	(0.73)

For the periods where a net loss attributable to common shareholders is present, dilutive securities have been excluded from the calculation of diluted net loss per share attributable to common stockholders as including them would have been anti-dilutive. For the nine months ended September 30, 2023, the weighted-average number of unvested RSUs and other contingently issuable shares excluded from the computations was 1,349,442 shares.