Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

The following table represents calculations of net earnings per share of common stock:


	Three Months Ended March 31,
	2023		2022
Amounts attributable to Chart common stockholders
(Loss) income from continuing operations	$	(14.6)	$	10.2
Less: Mandatory convertible preferred stock dividend requirement	6.8		—
(Loss) income from continuing operations attributable to Chart	(21.4)		10.2
Loss from discontinued operations, net of tax	(0.4)		—
Net (loss) income attributable to Chart common stockholders	(21.8)		10.2
Earnings per common share - basic:
(Loss) income from continuing operations	$	(0.51)	$	0.28
(Loss) income from discontinued operations	(0.01)		—
Net income attributable to Chart Industries, Inc.	$	(0.52)	$	0.28

Earnings per common share – diluted:
Income from continuing operations	$	(0.51)	$	0.25
(Loss) income from discontinued operations	(0.01)		—
Net income attributable to Chart Industries, Inc.	$	(0.52)	$	0.25

Weighted average number of common shares outstanding – basic	41.94		35.83
Incremental shares issuable upon assumed conversion and exercise of share-based awards (1)	—		0.24
Incremental shares issuable due to dilutive effect of convertible notes (1)	—		2.56
Incremental shares issuable due to dilutive effect of the warrants (1)	—		2.16

Weighted average number of common shares outstanding – diluted	41.94		40.79

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(1)The weighted average common shares outstanding for the diluted (loss) earnings per share calculation for the three months ended March 31, 2023 excludes the dilutive effect of approximately 0.18 shares related to assumed conversion and exercise of share based awards, 2.40 shares related to the dilutive effect of the convertible notes and 1.95 shares related to the dilutive effect of the warrants as their inclusion would have been anti-dilutive due to our net loss.

Schedule of Antidilutive Securities

Additionally, diluted earnings per share does not reflect the following potential common shares as the effect would be anti-dilutive:


	Three Months Ended March 31,
	2023		2022
Numerator
Mandatory convertible preferred stock dividend requirement (1)	$	6.79	$	—
Denominator
Anti-dilutive shares, Share-based awards	0.12		0.14
Anti-dilutive shares, Convertible note hedge and capped call transactions (2)	2.40		2.56
Anti-dilutive shares, Mandatory convertible preferred stock (1)	3.41		—
Total anti-dilutive securities	5.93		2.70

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(1)We calculate the basic and diluted earnings per share based on net income, which approximates income available to common shareholders for each period. Earnings per share is calculated using the two-class method, which is an earnings allocation formula that determines the earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series B Mandatory Convertible Preferred Stock and the 2024 Convertible Notes are participating securities. Undistributed earnings are not allocated to the participating securities because the participation features are discretionary. Net losses are not allocated to the Series B Mandatory Convertible Preferred Stock, as it does not have a contractual obligation to share in the losses of Chart. Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share is computed by dividing net income available to common shareholders by the sum of the weighted average number of common shares outstanding and any dilutive non-participating securities for the period.

(2)The convertible note hedge offsets any dilution upon actual conversion of the 2024 Notes up to a common stock price of $71.775 per share. For further information, refer to Note 9, “Debt and Credit Arrangements.”