12. EARNINGS PER SHARE

Basic earnings per share (EPS) is calculated by dividing net income or loss attributable to NCR, less any dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock, by the weighted average number of shares outstanding during the period.

In computing diluted EPS, we adjust the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock. We adjust the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares related to the Series A Convertible Preferred Stock and stock-based compensation plans.

The holders of Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not have nonforfeitable rights to common stock dividends or common stock dividend equivalents. Accordingly, the Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not qualify as participating securities. See Note 7. Stock Compensation Plans for share information on NCR’s stock compensation plans.

The components of basic earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2018			2017
Numerator
Income from continuing operations	$	55		$	57
Series A Convertible Preferred Stock dividends	(12		)	(12		)
Deemed dividend on modification of Series A Convertible Preferred Stock	—			(4		)
Deemed dividend on Series A Convertible Preferred Stock redemption	—			(58		)
Net income (loss) from continuing operations attributable to NCR common stockholders	43			(17		)
Loss from discontinued operations, net of tax	(35		)	—
Net income (loss) attributable to NCR common stockholders	$	8		$	(17	)

Denominator
Basic weighted average number of shares outstanding	119.2			122.8

Basic earnings (loss) per share:
From continuing operations	$	0.36		$	(0.14	)
From discontinued operations	(0.29		)	—
Total basic earnings (loss) per share	$	0.07		$	(0.14	)

The components of diluted earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2018			2017
Numerator
Income from continuing operations	$	55		$	57
Series A Convertible Preferred Stock dividends	(12		)	(12		)
Deemed dividend on modification of Series A Convertible Preferred Stock	—			(4		)
Deemed dividend on Series A Convertible Preferred Stock redemption	—			(58		)
Net income (loss) from continuing operations attributable to NCR common stockholders	43			(17		)
Loss from discontinued operations, net of tax	(35		)	—
Net income (loss) attributable to NCR common stockholders	$	8		$	(17	)

Basic weighted average number of shares outstanding	119.2			122.8
Dilutive effect of restricted stock units and stock options	4.6			—
Denominator	123.8			122.8

Diluted earnings (loss) per share:
From continuing operations	$	0.35		$	(0.14	)
From discontinued operations	(0.29		)	—
Total diluted earnings per share	$	0.06		$	(0.14	)

For the three months ended March 31, 2018, shares related to the as-if converted Series A Convertible Preferred Stock of 27.7 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the three months ended March 31, 2018, there were 1.4 million weighted anti-dilutive restricted stock units and stock options outstanding.

For the three months ended March 31, 2017, due to the net loss attributable to NCR common stockholders, shares related to stock-based compensation plans as well as the as-if converted Series A Convertible Preferred Stock were excluded from the diluted share count because their effect would have been anti-dilutive. The weighted shares related to stock-based compensation plans excluded were 5.4 million and the weighted as-if converted Series A Convertible Preferred Stock, considering the existing and redeemed shares, excluded were 28.8 million.