Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2021

NOTE 18. EARNINGS (LOSS) PER SHARE

Net income is allocated between the Company’s common shares and other participating securities based on their participation rights. The Series A Preferred Stock (See Note 16 – “Shareholders’ Equity”), represents participating securities. Earnings attributable to Series A Preferred Stock is not included in earnings attributable to common shares in calculating earnings per common share (the two-class method). For periods of net loss, there is no impact from the two-class method on earnings (loss) per share (“EPS”) as net loss is allocated to common shares because Series A Preferred Stock shares are not contractually obligated to share the loss.

The following table sets forth the computation of earnings (loss) per common share using the two-class method. The dilutive effect of outstanding Series A Preferred Stock and the Series A Preferred Stock dividend are reflected in diluted EPS using the if-converted method and warrants, options, and restricted and performance shares are reflected using the treasury stock method. For periods of net loss attributable to common shareholders, basic and diluted EPS are the same, as the assumed exercise of Series A Preferred Stock, restricted and performance shares, warrants and stock options are anti-dilutive. (See Note 2 – “Significant Accounting Policies”) (amounts in millions, except share and per share amounts):


	For the Years Ended December 31,
	2021			2020

Net income (loss)	$	47		$	(153	)
Less income attributable to Series A Preferred Stock		(184	)		(222	)
Net loss attributable to common shareholders	$	(137	)	$	(375	)

Basic and diluted weighted average shares outstanding(1)		205,758,208			169,482,340
Loss per common share - basic and diluted	$	(0.67	)	$	(2.21	)

(1)

The following items were excluded from the calculation of diluted shares as their inclusion would be anti-dilutive:

For the years ended December 31, 2021 and 2020, 4,000,000 shares of Series A Preferred Stock, which are convertible to the same number of common shares.

For the years ended December 31, 2021 and 2020, 162,500 stock options to purchase the same number of common shares.

For the years ended December 31, 2021 and 2020, 7,539,697 and 12,447,912 common share equivalents, respectively, which represent the dividend that the Series A Preferred Stock holders are entitled to receive. (See additional description in Note 16 - "Shareholders' Equity")

For the year ended December 31, 2021, 761,126 RSUs and 552,329 PSUs. For the year ended December 31, 2020, 1,108,562 RSUs.

For the year ended December 31, 2020, 63,774,398 warrants exercisable to purchase common shares on a 3:1 basis (21,258,133 ordinary share equivalents) for which the exercise price exceeded the average market price.