EARNINGS (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2022


NOTE 7 — EARNINGS (LOSS) PER COMMON SHARE

Basic earnings (loss) per share is computed by dividing Net income (loss) by the number of weighted average common shares outstanding during the reporting period. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, in the periods in which such effect is dilutive.

The following table shows the effect of stock-based awards on the weighted average number of shares outstanding used in calculating diluted earnings per share:


In millions of shares
	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Weighted average common shares outstanding - basic	92.2	91.9	92.1	91.8
Incremental shares outstanding related to stock-based awards (1)	0.2	—	0.3	—
Weighted average common shares outstanding - diluted	92.4	91.9	92.4	91.8

(1)In periods of net loss, stock-based awards are anti-dilutive and therefore excluded from the earnings (loss) per share calculation.

Anti-dilutive stock-based awards excluded from the computation of diluted earnings (loss) per share using the treasury stock method includes the following:


In thousands of shares
	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Option awards	1,153	1,741	1,297	2,042
RSU awards	397	318	115	307

PSUs are offered to key employees and are subject to achievement of specified performance conditions. Contingently issuable shares are excluded from the computation of diluted earnings per share based on current period results. The shares would not be issuable if the end of the reporting period were the end of the contingency period. If such goals are not met, no compensation expense is recognized, and any previously recognized compensation expense is reversed.