EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

NOTE 9EARNINGS PER SHARE

We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Certain restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights at the same rate as common stock.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because they do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding potentially dilutive securities.

On May 31, 2016, we completed a reverse stock split using a ratio of one share of common stock for every ten shares then outstanding. Share and per share amounts included in this report have been restated for all periods presented to reflect this stock split.

For the three months ended March 31, 2017 and 2016, we issued approximately 42,000 shares and 98,000 shares, respectively, of common stock in connection with our employee stock purchase plan.

The following table presents the calculation of basic and diluted EPS for the three months ended March 31, 2017 and 2016:

	Three months ended March 31,
	2017			2016
	(in millions, except per-share amounts)
Basic EPS calculation
Net income (loss) attributable to common stock	$	53		$	(50	)
Less: net income (loss) allocated to participating securities	(1		)	—

Net income (loss) available to common stockholders	$	52		$	(50	)


Weighted-average common shares outstanding - basic	42.3			38.5

Basic EPS	$	1.23		$	(1.30	)


Diluted EPS calculation
Net income (loss) attributable to common stock	$	53		$	(50	)
Less: net income (loss) allocated to participating securities	(1		)	—

Net income (loss) available to common stockholders	$	52		$	(50	)


Weighted-average common shares outstanding - basic	42.3			38.5
Dilutive effect of potentially dilutive securities	0.3			—

Weighted-average common shares outstanding - diluted	42.6			38.5

Diluted EPS	$	1.22		$	(1.30	)