Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2015

NOTE 10: EARNINGS PER SHARE

Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share include any dilutive effect of potential common shares. In periods with a net loss from continuing operations, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.

Weighted-average basic and diluted shares outstanding were 41.9 million for both the three and nine months ended September 30, 2015, and 41.7 million for the nine months ended September 30, 2014. For the three months ended September 30, 2014, weighted-average basic shares outstanding were 41.8 million and weighted-average diluted shares outstanding were 43.3 million.

As a result of the net loss from continuing operations presented for the three months and nine months ended September 30, 2015 and the nine months ended September 30, 2014, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding for that period. If Kodak had reported earnings from continuing operations for the three months and nine months ended September 30, 2015 and the nine months ended September 30, 2014, the following potential shares of its common stock would have been dilutive in the computation of diluted earnings per share:

(in millions of shares)	Three Months Ended September 30,		Nine Months Ended September 30,
	2015		2015		2014
Unvested share-based awards		0.2		0.2		0.3
Detachable warrants to purchase common shares		-		0.4		1.7
Total		0.2		0.6		2.0

Weighted-average diluted shares outstanding for the three months ended September 30, 2014 were 43.3 million and included the dilutive effect of the following potential shares of common stock:

(in millions of shares)	Three Months Ended September 30,
	2014
Unvested share-based awards		0.2
Detachable warrants to purchase common shares		1.3
Total		1.5

The computation of diluted earnings per share would have excluded 0.1 million shares for the three month periods ended September 30, 2015 and September 30, 2014 and 0.2 million shares for the nine month period ended September 30, 2014 associated with the assumed conversion of outstanding employee stock options because the effects would have been anti-dilutive. There were no potentially dilutive outstanding employee stock options in the nine month period ended September 30, 2015.