Quarterly report pursuant to Section 13 or 15(d)

Earnings/(Loss) Per Share

v3.21.2
Earnings/(Loss) Per Share
9 Months Ended
Sep. 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 Co. 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 Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders $ 101  $ 40  $ 203  $ (258)
Loss on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes —  —  (2) — 
Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 101  $ 40  $ 201  $ (258)
Basic earnings/(loss) per share (a)
Continuing operations $ 1.16  $ 0.47  $ 2.35  $ (3.00)
Discontinued operations —  —  (0.02) — 
$ 1.16  $ 0.47  $ 2.33  $ (3.00)
Diluted earnings/(loss) per share (a)
Continuing operations $ 1.15  $ 0.47  $ 2.33  $ (3.00)
Discontinued operations —  —  (0.03) — 
$ 1.15  $ 0.47  $ 2.30  $ (3.00)
Basic weighted average shares outstanding 86.6  85.9  86.5  86.1 
Stock-settled appreciation rights (“SSARs”), RSUs,(b) PSUs (c) and NQs (d)
0.8  0.2  0.8  — 
Diluted weighted average shares outstanding (e)
87.4  86.1  87.3  86.1 
Dividends:
Aggregate dividends paid to shareholders $ 26  $ 26  $ 79  $ 112 
(a)Earnings/(loss) per share amounts are calculated using whole numbers.
(b)Excludes 0.4 million and 0.3 million of anti-dilutive restricted stock units (“RSUs”) for the three and nine months ended September 30, 2021. Excludes 1.0 million and 1.1 million of anti-dilutive RSUs for the three and nine months ended September 30, 2020, of which 0.1 million would have been dilutive for the nine months ended September 30, 2020 had the Company not been in a net loss position during the period. 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 nine months ended September 30, 2021, as the Company had not met the required performance metrics. Excludes 0.3 million PSUs for both the three and nine months ended September 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 nine months ended September 30, 2021. Excludes 2.3 million and 2.1 million of outstanding NQ awards that would have been anti-dilutive to EPS for the three and nine months ended September 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 September 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 nine months ended September 30, 2021 were $4 million. As of September 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. The amendment placed the Company into a relief period from July 15, 2020 through April 1, 2022 (“Relief Period”) that prohibited the use of cash for share repurchases during this period. On October 22, 2021, the Company renewed its credit agreement governing its revolving credit facility and term loan B, which terminated the Relief Period and eliminated the Relief Period restrictions regarding share repurchases and dividends. See Note 25—Subsequent Events for additional details.