14. Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company's declaration of a dividend or distribution for common shares.

On October 10, 2018, the Company completed its previously-announced 1-for-12 reverse stock split. The Successor period presented has been retrospectively revised to reflect this change.

The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts).



	Successor		Predecessor
	For the Period August 1 - September 30, 2018		For the Period July 1 - July 31, 2018			Three Months Ended September 30, 2017		For the Period January 1 - July 31, 2018		Nine Months Ended September 30, 2017
Net income (loss) attributable to Successor/Predecessor	$	1,020	$	(64	)	$	7	$	154	$	(11	)
Less: Undistributed earnings attributable to participating stockholders	9		—			—		—		—
Net income (loss) attributable to common stockholders	$	1,011	$	(64	)	$	7	$	154	$	(11	)

Net income (loss) per common share attributable to Successor/Predecessor:
Basic	$	11.13	$	(0.65	)	$	0.07	$	1.57	$	(0.11	)
Diluted	$	10.99	$	(0.65	)	$	0.07	$	1.55	$	(0.11	)

Weighted average shares of common stock outstanding (in thousands):
Basic	90,808		98,164			97,706		98,046		97,685
Dilutive effect of stock awards	345		—			988		1,091		—
Dilutive effect of participating securities	839		—			—		—		—
Diluted	91,992		98,164			98,694		99,137		97,685