Note 14 - Earnings Per Share

3 Months Ended

Mar. 31, 2025

NOTE 14: EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, 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.

A reconciliation of the amounts used to calculate basic and diluted (loss) earnings per share for the three months ended March 31, 2025 and 2024 follows:


	Three Months Ended
	March 31,
(in millions)	2025			2024
Net (loss) earnings	$	(7	)	$	32
Less: Series B Preferred stock cash dividends		(1	)		(1	)
Less: Series C Preferred stock in-kind dividends		(2	)		(1	)
Less: Preferred stock deemed dividends		—			(1	)
Less: Earnings attributable to Series C Preferred shareholders		—			(4	)
Net (loss) earnings available to common shareholders - basic	$	(10	)	$	25

Effect of dilutive securities:
Add back: Series B preferred stock cash and deemed dividends	$	—		$	2
Net earnings available to common shareholders - diluted	$	(10	)	$	27


	Three Months Ended
	March 31,
(in millions of shares)	2025		2024
Weighted average shares — basic		80.6		79.7
Effect of dilutive securities
Unvested restricted stock units		—		1.5
Employee stock options		—		0.6
Series B Preferred Stock		—		9.5
Weighted average shares — diluted		80.6		91.3

As a result of the net loss available to common shareholders for the three months ended March 31, 2025, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak had reported earnings available to common shareholders for the three months ended March 31, 2025, the calculation of diluted earnings per share would have included the assumed vesting of 1.8 million unvested restricted stock units and the assumed exercise of 1.6 million stock options.

The computation of diluted earnings per share for the three months ended March 31, 2025 excluded the impact of (1) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (2) the assumed conversion of 1.2 million shares of Series C Preferred Stock and (3) the assumed exercise of 1.7 million outstanding employee stock options because the effects would have been anti-dilutive.

The computation of diluted earnings per share for the three months ended March 31, 2024 excluded the impact of (1) the assumed conversion of 1.2 million shares of Series C Preferred Stock, (2) the assumed exercise of 3.9 million outstanding employee stock options and (3) the assumed vesting of 0.1 million unvested restricted stock units because the effects would have been anti-dilutive.