EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

NOTE 8EARNINGS PER SHARE

We compute earnings per share (EPS) using the two-class method required for participating securities. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Restricted stock awards are considered participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares.

The denominator of basic EPS is the sum of the weighted-average number of common shares outstanding during the periods presented and vested stock awards that have not yet been issued as common stock; however, it excludes outstanding shares related to unvested stock awards. The denominator of diluted EPS is based on the basic shares outstanding, adjusted for the effect of outstanding option awards, to the extent they are dilutive. The effect of the stock options granted in August 2015 and December 2014 was anti-dilutive for the periods presented.

For the three months ended March 31, 2016 and 2015, we issued approximately 980,000 shares and 370,000 shares, respectively, of common stock in connection with our employee stock purchase plan. The effect of the employee stock purchase plan was anti-dilutive for both periods.

The following table presents the calculation of basic and diluted EPS for the three-month periods ended March 31, 2016 and 2015:

	Three months ended March 31,
	2016		2015
	(in millions, except per-share amounts)
Basic EPS calculation
Net loss	$	(50)	$	(100	)
Net loss allocated to participating securities	—		—

Net loss available to common stockholders	$	(50)	$	(100	)


Weighted-average common shares outstanding - basic	385.3		382.1

Basic EPS	$	(0.13)	$	(0.26	)


Diluted EPS calculation
Net loss	$	(50)	$	(100	)
Net loss allocated to participating securities	—		—

Net loss available to common stockholders	$	(50)	$	(100	)


Weighted-average common shares outstanding - basic	385.3		382.1
Dilutive effect of potentially dilutive securities	—		—

Weighted-average common shares outstanding - diluted	385.3		382.1

Diluted EPS	$	(0.13)	$	(0.26	)