Note 13 - Earnings Per Share

9 Months Ended

Sep. 30, 2016

NOTE 13: 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 diluted shares outstanding for the three and nine months ended September 30, 2016 included the dilutive effect of the following potential shares of common stock:

	Three Months Ended		Nine Months Ended
(in millions of shares)	September 30,		September 30,
	2016		2016
Unvested restricted stock units		0.4		0.3
Warrants to purchase common shares		0.1		-
		0.5		0.3

The computation of diluted earnings per share for the three and nine month periods ended September 30, 2016 excluded the impact of the assumed conversion of net share settled warrants to purchase 1.8 million shares of common shares at an exercise price of $16.12 and the assumed conversion of 2.0 million outstanding employee stock options because they would have been anti-dilutive. In addition, the computation of diluted earnings per share for the nine-month period ended September 30, 2016 excluded the impact of conversion of net share settled warrants to purchase 1.8 million shares of common shares at an exercise price of $14.93 because they would have been anti-dilutive.

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

	Three Months Ended		Nine Months Ended
(in millions of shares)	September 30,		September 30,
	2015		2015
Unvested restricted stock units		0.2		0.2
Warrants to purchase common shares		-		0.4
		0.2		0.6

The effect of the net share settled warrants to purchase shares of common shares at an exercise price of $14.93 for the three-month period ended September 30, 2015 was less than 0.1 million. The computation of diluted earnings per share for the three and nine month periods ended September 30, 2015 excluded the assumed conversion of 1.4 million outstanding employee stock options because the effects would have been anti-dilutive. In addition, the computation of diluted earnings per share for the three-month period ended September 30, 2015 excluded the impact of net share settled warrants to purchase 1.8 million shares of common shares at an exercise price of $16.12 because they would have been anti-dilutive.