14. Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines 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 A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares.

The following table sets forth the computation of basic and diluted net loss per common share (amounts in millions, except per share amounts):



Computation of earnings per share	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Net loss attributable to Mr. Cooper	$	(168	)	$	(186	)
Less: Undistributed earnings attributable to participating stockholders	—			—
Net loss attributable to common stockholders	$	(168	)	$	(186	)

Net loss per common share attributable to Mr. Cooper:
Basic	$	(1.84	)	$	(2.05	)
Diluted	$	(1.84	)	$	(2.05	)

Weighted average shares of common stock outstanding (in thousands):
Basic	91,385			90,828
Dilutive effect of stock awards⁽¹⁾	—			—
Dilutive effect of participating securities⁽¹⁾	—			—
Diluted	91,385			90,828


⁽¹⁾	Due to year-to-date loss, the Company excluded potential common shares from the computation of diluted EPS because inclusion would be antidilutive.