Earnings Per Share

We compute basic and diluted earnings per share ("EPS") in accordance with the two-class method. Net (loss) income attributable to Ensco used in our computations of basic and diluted EPS is adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS is calculated using the treasury stock method and excludes non-vested shares.

The following table is a reconciliation of (loss) income from continuing operations attributable to Ensco shares used in our basic and diluted EPS computations for the three-month and six-month periods ended June 30, 2017 and 2016 (in millions):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
(Loss) income from continuing operations attributable to Ensco	$	(45.9	)	$	590.8		$	(71.0	)	$	767.0
Income from continuing operations allocated to non-vested share awards⁽¹⁾	(.1		)	(9.8		)	(.2		)	(12.0		)
(Loss) income from continuing operations attributable to Ensco shares	$	(46.0	)	$	581.0		$	(71.2	)	$	755.0


⁽¹⁾	Losses are not allocated to non-vested share awards. Therefore, only dividends attributable to the our non-vested share awards are included in the three-month and six-month periods ended June 30, 2017.

Antidilutive share awards totaling 400,000 were excluded from the computation of diluted EPS for the three-month and six-month periods ended June 30, 2017. Additionally, due to our net loss position, potentially dilutive share awards totaling 900,000 were also excluded from the computation of diluted EPS for the three-month and six-month periods ended June 30, 2017. Antidilutive share awards totaling 500,000 and 600,000 were excluded from the computation of diluted EPS for the three-month and six-month ended June 30, 2016.

We have the option to settle our 2024 Convertible Notes in cash, shares or a combination thereof for the aggregate amount due upon conversion. Our intent is to settle the principal amount of the 2024 Convertible Notes in cash upon conversion. If the conversion value exceeds the principal amount (i.e., our share price exceeds the exchange price on the date of conversion), we expect to deliver shares equal to the remainder of our conversion obligation in excess of the principal amount.

During each reporting period that our average share price exceeds the exchange price, an assumed number of shares required to settle the conversion obligation in excess of the principal amount will be included in our denominator for the computation of diluted EPS using the treasury stock method. Our average share price did not exceed the exchange price during the three-month or six-month periods ended June 30, 2017.