Quarterly report pursuant to Section 13 or 15(d)

Earnings/(Loss) Per Share

v3.21.2
Earnings/(Loss) Per Share
6 Months Ended
Jun. 30, 2021
Earnings Per Share Reconciliation [Abstract]  
Earnings Per Share Earnings/(Loss) Per Share
The computations of basic and diluted earnings/(loss) per share (“EPS”) are based on Net income/(loss) attributable to Travel + Leisure shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding. The following table sets forth the computations of basic and diluted EPS (in millions, except per share data):
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
Net income/(loss) from continuing operations attributable to Travel + Leisure shareholders $ 74  $ (164) $ 102  $ (298)
Loss on disposal of discontinued business attributable to Travel + Leisure shareholders, net of income taxes (2) —  (2) — 
Net income/(loss) attributable to Travel + Leisure shareholders $ 72  $ (164) $ 100  $ (298)
Basic earnings/(loss) per share (a)
Continuing operations $ 0.85  $ (1.92) $ 1.18  $ (3.46)
Discontinued operations (0.02) —  (0.02) — 
$ 0.83  $ (1.92) $ 1.16  $ (3.46)
Diluted earnings/(loss) per share (a)
Continuing operations $ 0.84  $ (1.92) $ 1.17  $ (3.46)
Discontinued operations (0.02) —  (0.02) — 
$ 0.82  $ (1.92) $ 1.15  $ (3.46)
Basic weighted average shares outstanding 86.5  85.4  86.4  86.1 
RSUs,(b) PSUs (c) and NQs (d)
0.9  —  0.7  — 
Diluted weighted average shares outstanding (e)
87.4  85.4  87.1  86.1 
Dividends:
Aggregate dividends paid to shareholders $ 27  $ 43  $ 53  $ 86 
(a)Earnings/(loss) per share amounts are calculated using whole numbers.
(b)Excludes 1.6 million and 1.4 million of anti-dilutive restricted stock units (“RSUs”) for the three and six months ended June 30, 2020, of which 0.4 million and 0.3 million would have been dilutive had the Company not been in a net loss position during these periods. These shares could potentially dilute EPS in the future.
(c)Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million for both the three and six months ended June 30, 2021, as the Company had not met the required performance metrics. Excludes 0.3 million PSUs for both the three and six months ended June 30, 2020, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future.
(d)Excludes 1.4 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for both the three and six months ended June 30, 2021. Excludes 2.4 million and 2.0 million of outstanding awards that would have been anti-dilutive to EPS for the three and six months ended June 30, 2020. These outstanding stock option awards could potentially dilute EPS in the future.
(e)The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period.

Stock Repurchase Program
The following table summarizes stock repurchase activity under the current stock repurchase program (in millions):
Shares Cost
As of December 31, 2020 111.3  $ 5,727 
Repurchases —  — 
As of June 30, 2021 111.3  $ 5,727 
Proceeds received from stock option exercises increase the repurchase capacity under the program. Cash proceeds received from stock option exercises during the six months ended June 30, 2021 were $4 million. As of June 30, 2021, the Company had $354 million of remaining availability under its program. In March 2020, the Company suspended its share repurchase activity due to the uncertainty resulting from COVID-19. On July 15, 2020, the Company amended the credit agreement for its revolving credit facility and term loan B. Among other changes, the amendment places the Company into a relief
period from July 15, 2020 through April 1, 2022 (“Relief Period”) that prohibits the use of cash for share repurchases until such time as the Company chooses to exercise its option to exit the Relief Period. The Company has the option to terminate the Relief Period at any time it can demonstrate compliance with the 4.25 to 1.0 first lien leverage ratio.