Net Income Per Share

9 Months Ended

Sep. 30, 2022

The following table sets forth the computation of basic and diluted net income per share (in millions, except per share amounts). For the three and nine months ended September 30, 2022 and 2021, an immaterial number of shares

related to the Company's restricted stock units and stock warrants were excluded from the denominator because inclusion of such shares would be antidilutive.


	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021
NUMERATOR:
Net income	$	277		$	446		$	759		$	909
Add: Interest expense	5		(a)	—			17		(a)	—
Net income attributable to common stockholders	282			446			776			909

DENOMINATOR:
Weighted-average shares outstanding, basic	593			592			593			591
Dilutive effects of Convertible Notes	45		(a)	14		(b)	49		(a)	17		(b)
Dilutive effect of stock warrants	—			1			—			1
Dilutive effect of restricted stock units	1			—			1			1
Adjusted weighted-average shares outstanding, diluted	639			607			643			610

NET INCOME PER SHARE:



Basic	$	0.47		$	0.75		$	1.28		$	1.54
Diluted	$	0.44		$	0.73		$	1.21		$	1.49

(a) As of January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method. The standard requires the Company to apply the if-converted method for purposes of diluted net income per share, which requires the Company to assume that all Convertible Notes were converted and outstanding for the entire period. Using this method, the numerator is affected by adding back interest expense and the denominator is affected by including the effect of potential share settlement, if the effect is more dilutive, regardless of the type of settlement. For the three and nine months ended September 30, 2022, all shares issuable on conversion were included in the denominator. See Notes 3 and 11 for further information regarding the new standard and the Convertible Notes.

(b) Prior to the adoption of ASU 2020-06, the Convertible Notes were accounted for using the treasury stock method for the purposes of net income per share. For the three and nine months ended September 30, 2021, the average market price of the Company's common stock exceeded the conversion price per share of $38.48 and as such, the common shares underlying the Convertible Notes were included in the diluted calculation.