Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share Attributable to Common Stockholders

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Net Income Per Share Attributable to Common Stockholders
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Income Per Share Attributable to Common Stockholders NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
Basic net income per share attributable to common stockholders (“EPS”) excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects potential dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the potential common shares had been issued. The dilutive effect of unvested stock is calculated using the treasury-stock method and the dilutive effect of convertible securities is calculated using the treasury or if-converted method, as referenced below.

The following table reconciles basic and diluted weighted average common shares outstanding for the three months ended March 31, 2021 and 2020 (in millions, except per share data):
Three Months Ended March 31,
2021 2020
Weighted average common shares outstanding:
Basic 252.9  253.0 
Dilutive unvested stock 1.5  1.1 
Dilutive convertible securities 4.5  45.5 
Diluted 258.9  299.6 
Basic net income per share attributable to common stockholders $ 1.56  $ 1.48 
Diluted net income per share attributable to common stockholders $ 1.54  $ 1.43 

Potentially dilutive securities that were not included in the diluted net income per share computations because their effects would have been anti-dilutive were as follows (in millions):
Three Months Ended March 31,
2021 2020
Unvested stock (1) 1.9  2.1 
Convertible notes
2021 Cheniere Convertible Unsecured Notes (2) —  — 
11% Convertible Senior Secured Notes due 2025 (“2025 CCH HoldCo II Convertible Senior Notes”) (3) —  — 
2045 Cheniere Convertible Senior Notes —  — 
Total potentially dilutive common shares 1.9  2.1 
(1)Does not include 0.5 million shares and 0.7 million shares for the three months ended March 31, 2021 and 2020, respectively, of unvested stock because the performance conditions had not yet been satisfied as of the respective dates.
(2)Since we have the intent and ability to settle the remaining outstanding principal amount of the 2021 Cheniere Convertible Unsecured Notes in cash and the excess conversion premium (the “conversion spread”) in either cash or shares, the treasury stock method was applied for calculating any potential dilutive effect of the conversion spread on net income per share for the three months ended March 31, 2021. However, since the average market price of our common stock did not exceed the conversion price of our 2021 Cheniere Convertible Unsecured Notes, the conversion spread was excluded from the computation of diluted net income per share for the three months ended March 31, 2021.
(3)Since we redeemed the remaining principal amount of the 2025 CCH HoldCo II Convertible Senior Notes and the related premium in cash in July 2020, the 2025 CCH HoldCo II Convertible Senior Notes were not included in the computation of diluted net income per share for the three months ended March 31, 2021.