Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2019

Basic earnings (loss) per share (EPS) is computed by dividing net earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the reportable period. Diluted EPS is computed by adjusting basic EPS for the effect of all potential common shares unless they are anti-dilutive. For purpose of this calculation, potentially dilutive securities are determined by applying the treasury stock method to the assumed exercise of in-the-money stock options and the assumed vesting of outstanding restricted stock awards (RSAs) and release of deferred restricted stock units (RSUs). Potentially dilutive securities related to convertible senior notes are determined using the if-converted method.

The Company's vested deferred RSUs have non-forfeitable rights to dividends prior to release and are considered participating securities. Accordingly, they are included in the computation of basic and diluted EPS, pursuant to the two-class method; however, due to amounts being below $1 million dollars, they are not shown in the table below. Under the two-class method, distributed and undistributed earnings allocated to participating securities are excluded from net earnings (loss) attributable to common stockholders for purposes of calculating basic and diluted EPS. However, net losses are not allocated to participating securities since they are not contractually obligated to share in the losses of the Company.

Potentially dilutive securities excluded from the calculation of diluted EPS because their effect would have been anti-dilutive were 9 million and 9 million shares, respectively, for the three and nine months ended September 30, 2019, and 9 million shares and less than 1 million shares, respectively, for the three and nine months ended September 30, 2018.

The computations for Class A basic and diluted EPS are as follows (in millions, except share data):



	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Numerator for basic and diluted EPS:
Net earnings (loss) attributable to controlling interest	$	(51	)	$	(13	)	$	(88	)	$	156
Numerator for basic EPS - net income (loss) attributable to common stockholders	$	(51	)	$	(13	)	$	(88	)	$	156
Add back convertible senior notes interest	—			—			—			11
Numerator for diluted EPS - net income (loss) attributable to common stockholders	$	(51	)	$	(13	)	$	(88	)	$	167

Denominator for EPS:
Weighted average number of shares:
Class A common stock - basic	97,600,393			97,460,492			97,595,765			97,464,012
Add dilutive effect of:
Restricted stock awards	—			—			—			153,444
Restricted stock units	—			—			—			652
Convertible senior notes	—			—			—			8,170,740
Class A common stock - diluted	97,600,393			97,460,492			97,595,765			105,788,848

EPS:
Class A common stock:
Basic	$	(0.53	)	$	(0.13	)	$	(0.91	)	$	1.60
Diluted	$	(0.53	)	$	(0.13	)	$	(0.91	)	$	1.58

Dividends declared per Class A common share	$	0.42		$	0.42		$	1.27		$	1.27