NOTE 10 EARNINGS PER SHARE

We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Certain of our restricted and performance stock awards are considered participating securities because they have non-forfeitable dividend rights at the same rate as our common stock.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding all potentially dilutive securities.

The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2018 and 2017:


	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
	(in millions, except per-share amounts)
Net income (loss)	$	91	$	(132)	$	37	$	(127)
Net income attributable to noncontrolling interest		(25)		(1)		(55)		(1)
Net income (loss) attributable to common stock		66		(133)		(18)		(128)
Less: net income allocated to participating securities		(1)		—		—		—
Net income (loss) available to common stockholders	$	65	$	(133)	$	(18)	$	(128)
Weighted-average common shares outstanding - basic		48.5		42.7		47		42.5
Basic EPS	$	1.34	$	(3.11)	$	(0.38)	$	(3.01)

Net income (loss)	$	91	$	(132)	$	37	$	(127)
Net income attributable to noncontrolling interest		(25)		(1)		(55)		(1)
Net income (loss) attributable to common stock		66		(133)		(18)		(128)
Less: net income allocated to participating securities		(1)		—		—		—
Net income (loss) available to common stockholders	$	65	$	(133)	$	(18)	$	(128)
Weighted-average common shares outstanding - basic		48.5		42.7		47		42.5
Dilutive effect of potentially dilutive securities		0.6		—		—		—
Weighted-average common shares outstanding - diluted		49.1		42.7		47		42.5
Diluted EPS	$	1.32	$	(3.11)	$	(0.38)	$	(3.01)
Weighted-average anti-dilutive shares(a)		1.1		2.5		2.8		2.6

(a)

Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted EPS. In periods of income, anti-dilutive shares primarily include the effect of out-of-the-money stock options. In periods of loss, anti-dilutive shares include stock options and unvested awards.