Earnings Per Share

9 Months Ended

Sep. 30, 2023

12. Earnings Per Share

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the sum of the weighted average number of shares of common stock and any dilutive securities outstanding during the period. The Company’s potentially dilutive securities are share-based awards. The Company applies the treasury stock method to determine the dilutive weighted average number of shares of common stock outstanding based on the outstanding share-based awards. As of September 30, 2023 and December 31, 2022, the Company had 10 million preferred shares authorized at par value of $0.00001 per share, with zero shares issued and outstanding and aggregate liquidation preference of zero dollars.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
Computation of Earnings Per Share	2023		2022		2023		2022
Net income	$	275	$	113	$	454	$	922

Weighted average shares of common stock outstanding (in thousands):
Basic	66,424		71,175		67,719		72,569
Dilutive effect of stock awards	1,244		1,703		1,319		1,988
Diluted	67,668		72,878		69,038		74,557

Earnings per common share
Basic	$	4.14	$	1.59	$	6.70	$	12.71
Diluted	$	4.06	$	1.55	$	6.58	$	12.37