Note 21. Earnings Per Share
The details of the earnings per share (“EPS”) calculations for the three and six months ended June 30, 2021 and 2020 are as follows:
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
|
| (Dollars in millions except per share) |
| |||||||||||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 409 |
|
| $ | (9 | ) |
| $ | 304 |
|
| $ | 43 |
|
Less: preferred stock dividend |
|
| (24 | ) |
|
| — |
|
|
| (24 | ) |
|
| — |
|
Net income (loss) available to common shareholders |
| $ | 385 |
|
| $ | (9 | ) |
| $ | 280 |
|
| $ | 43 |
|
Weighted average common shares outstanding |
|
| 69,667,651 |
|
|
| 75,595,991 |
|
|
| 72,862,102 |
|
|
| 75,316,827 |
|
EPS – Basic |
| $ | 5.53 |
|
| $ | (0.12 | ) |
| $ | 3.84 |
|
| $ | 0.57 |
|
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
|
| (Dollars in millions except per share) |
| |||||||||||||
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 409 |
|
| $ | (9 | ) |
| $ | 304 |
|
| $ | 43 |
|
Less: preferred stock dividend |
|
| (24 | ) |
|
| — |
|
|
| (24 | ) |
|
| — |
|
Net income (loss) available to common shareholders |
| $ | 385 |
|
| $ | (9 | ) |
| $ | 280 |
|
| $ | 43 |
|
Weighted average common shares outstanding – Basic |
|
| 69,667,651 |
|
|
| 75,595,991 |
|
|
| 72,862,102 |
|
|
| 75,316,827 |
|
Dilutive effect of unvested RSUs and other contingently issuable shares |
|
| — |
|
|
| 249,520 |
|
|
| — |
|
|
| 520,632 |
|
Dilutive effect of Series A Preferred Stock |
|
| 166,086,887 |
|
|
| — |
|
|
| 83,502,247 |
|
|
| — |
|
Weighted average common shares outstanding – Diluted |
|
| 235,754,538 |
|
|
| 75,845,511 |
|
|
| 156,364,349 |
|
|
| 75,837,459 |
|
EPS – Diluted |
| $ | 1.73 |
|
| $ | (0.12 | ) |
| $ | 1.94 |
|
| $ | 0.57 |
|
Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of Common Stock equivalents using the treasury stock method and the average market price of our Common Stock for the period.
The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three and six months ended June 30, 2021, the weighted number of stock options excluded from the computations was 128,499 and 263,245 respectively. As described in Note 20, Stock-Based Compensation, as part of emergence from Chapter 11, these stock options were cancelled under the Plan as of the effective date.
The diluted EPS calculations assume the Series A Preferred Stock are converted into Common Stock under the if-converted method and are included in Weighted average common shares outstanding – Diluted if they are dilutive.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
To receive a free e-mail notification whenever Garrett Motion Inc. makes a similar move, sign up!
