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.

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



	Successor							Predecessor
	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019			Two Months Ended September 30, 2018		One Month Ended July 31, 2018			Seven Months Ended July 31, 2018
Net income (loss) attributable to Successor/Predecessor	$	84	$	(189	)	$	1,020	$	(64	)	$	154
Less: Undistributed earnings attributable to participating stockholders	1		—			9		—			—
Net income (loss) attributable to common stockholders	$	83	$	(189	)	$	1,011	$	(64	)	$	154

Net income (loss) per common share attributable to Successor/Predecessor:
Basic	$	0.91	$	(2.08	)	$	11.13	$	(0.65	)	$	1.57
Diluted	$	0.90	$	(2.08	)	$	10.99	$	(0.65	)	$	1.55

Weighted average shares of common stock outstanding (in thousands):
Basic	91,080		91,012			90,808		98,164			98,046
Dilutive effect of stock awards	117		—			345		—			1,091
Dilutive effect of participating securities	839		—			839		—			—
Diluted	92,036		91,012			91,992		98,164			99,137