11. Earnings Per Share
The following represents our basic and diluted EPS calculations:
| | | | | |
| Year ended December 31, 2021 |
| (In millions, except per share data) | Class A |
| Net income available to Athene Holding Ltd. common shareholders – basic and diluted | $ | 3,718 | |
| |
| Basic weighted average shares outstanding | 191.6 | |
| Dilutive effect of stock compensation plans and warrants | 7.1 | |
| Diluted weighted average shares outstanding | 198.7 | |
| |
| Earnings per share | |
| Basic | $ | 19.40 | |
| Diluted | $ | 18.71 | |
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| Year ended December 31, 2020 |
| (In millions, except per share data) | Class A | | Class B | | Class M-1 | | Class M-2 | | Class M-3 | | Class M-4 |
| Net income (loss) available to Athene Holding Ltd. common shareholders – basic and diluted | $ | 1,573 | | | $ | (98) | | | $ | (13) | | | $ | (3) | | | $ | (4) | | | $ | (9) | |
| | | | | | | | | | | |
| Basic weighted average shares outstanding | 184.9 | | | 25.4 | | | 3.3 | | | 0.8 | | | 1.0 | | | 2.4 | |
| Dilutive effect of stock compensation plans and warrants | 3.7 | | | — | | | — | | | — | | | — | | | — | |
| Diluted weighted average shares outstanding | 188.6 | | | 25.4 | | | 3.3 | | | 0.8 | | | 1.0 | | | 2.4 | |
| | | | | | | | | | | |
| Earnings (loss) per share | | | | | | | | | | | |
| Basic | $ | 8.51 | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | |
| Diluted | $ | 8.34 | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | | | $ | (3.87) | |
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| Year ended December 31, 2019 |
| (In millions, except per share data) | Class A | | Class B | | Class M-1 | | Class M-2 | | Class M-3 | | Class M-4 |
| Net income available to Athene Holding Ltd. common shareholders – basic and diluted | $ | 1,760 | | | $ | 291 | | | $ | 38 | | | $ | 10 | | | $ | 11 | | | $ | 26 | |
| | | | | | | | | | | |
| Basic weighted average shares outstanding | 153.9 | | | 25.4 | | | 3.3 | | | 0.8 | | | 1.0 | | | 2.2 | |
| Dilutive effect of stock compensation plans | 0.4 | | | — | | | — | | | — | | | — | | | 0.3 | |
| Diluted weighted average shares outstanding | 154.3 | | | 25.4 | | | 3.3 | | | 0.8 | | | 1.0 | | | 2.5 | |
| | | | | | | | | | | |
| Earnings per share | | | | | | | | | | | |
| Basic | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | |
| Diluted | $ | 11.41 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 11.44 | | | $ | 9.94 | |
For the periods in which we had multiple classes of stock participating in earnings, we used the two-class method for allocating net income available to Athene Holding Ltd. common shareholders to each class of our common stock. During the first quarter of 2020, as a result of the closing of the share transaction discussed further in Note 14 – Related Parties, we converted outstanding Class B shares to Class A shares and Class M shares were converted to Class A shares and warrants. As a result, the EPS calculation for the year ended December 31, 2020 allocated all net income for the second, third and fourth quarters to Class A shares and, for the first quarter of 2020, used only the weighted average shares for the first quarter to allocate first quarter net loss to Class B and Class M shares. However, for Class B and Class M shares, the weighted average shares outstanding represented only that period of time that the shares were outstanding. The warrants issued as part of the conversion of the Class M shares are included within the dilutive effect of stock compensation plans and warrants above if dilutive.
Dilutive shares are calculated using the treasury stock method. For Class A shares, this method takes into account shares that can be settled into Class A shares, net of a conversion price. As of December 31, 2021, 2020 and 2019, the diluted EPS calculations for Class A shares excluded 0.8 million, 1.8 million and 31.9 million shares, respectively.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.