Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.19.3.a.u2
Earnings Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
4. EARNINGS PER SHARE

The computation of basic and diluted earnings per share (“EPS”) is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. On June 1, 2018, the Company’s separation from Wyndham Worldwide was effected through a tax-free distribution to Wyndham Worldwide’s stockholders of one share of the Company’s common stock for every one share of Wyndham Worldwide common stock held as of the close of business on May 18, 2018. As a result, on June 1, 2018, the Company had 99.8 million shares of common stock outstanding (inclusive of deferred shares and shares that vested upon separation). This share amount is being utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the date of separation.
The following table sets forth the computation of basic and diluted EPS (in millions, except per-share data) for the years ended December 31:
 
2019
 
2018
 
2017
Net income
$
157

 
$
162

 
$
230

Basic weighted average shares outstanding
96.5

 
99.5

 
99.8

Stock options and restricted stock units (“RSUs”)
0.1

 
0.3

 
—

Diluted weighted average shares outstanding
96.6

 
99.8

 
99.8

 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
Basic
$
1.63

 
$
1.62

 
$
2.31

Diluted
1.62

 
1.62

 
2.31

 
 
 
 
 
 
Dividends:
 
 
 
 
 
Cash dividends declared per share
$
1.16

 
$
0.75

 
$
—

Aggregate dividends paid to shareholders
$
112

 
$
77

 
$
—


Stock repurchase program
The following table summarizes stock repurchase activity under this stock repurchase program (in millions, except per share data):
 
Shares
 
Cost
 
Average Price Per Share
As of January 1, 2019
2.3

 
$
119

 
$
52.51

For the twelve months ended December 31, 2019
4.5

 
244

 
54.25

As of December 31, 2019
6.8

 
$
363

 
$
53.67



The Company had $237 million of remaining availability under its program as of December 31, 2019.