Earnings per Share (EPS)

Basic and diluted EPS are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s convertible preferred stock and warrants are considered participating securities because holders are entitled to receive dividends on an if-converted basis. The Predecessor Company's restricted stock awards were considered participating securities because holders were entitled to receive non-forfeitable dividends during the vesting term. Diluted EPS includes securities that could potentially dilute basic EPS during a reporting period, for which the Company includes the share-based compensation awards. Diluted EPS for the Predecessor Company also included the Debentures. Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.

For all but the Predecessor Company's performance units, which are further described in Note 20. "Share-Based Compensation" in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as amended, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For the Predecessor Company’s performance units, their contingent features resulted in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted.

A conversion of the Debentures could have resulted, up to the time of the cancellation, in payment for any conversion value in excess of the principal amount of the Debentures in the Predecessor Company’s common stock. For diluted EPS purposes, potential common stock was calculated based on whether the market price of the Predecessor Company’s common stock at the end of each reporting period was in excess of the conversion price of the Debentures. The effect of the Debentures was excluded from the calculation of diluted EPS for all periods presented herein because to do so would have been anti-dilutive for those periods.

The computation of diluted EPS for the Successor Company excluded aggregate share-based compensation awards of less than 0.1 million for the period of April 2 through June 30, 2017. The computation of diluted EPS for the Predecessor Company excluded aggregate share-based compensation awards of approximately 0.2 million for the periods of April 1, 2017 and January 1 through April 1, 2017, respectively, and 0.4 million for the three and six months ended June 30, 2016, respectively, because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company's average stock price during the applicable period.

The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.



	Successor			Predecessor						Successor			Predecessor
	April 2 through June 30, 2017			April 1, 2017			Three Months Ended June 30, 2016			April 2 through June 30, 2017			January 1 through April 1, 2017			Six Months Ended June 30, 2016
	April 2 through June 30, 2017			April 1, 2017			Three Months Ended June 30, 2016			April 2 through June 30, 2017			January 1 through April 1, 2017			Six Months Ended June 30, 2016
	(In millions, except per share data)
EPS numerator:
Income (loss) from continuing operations, net of income taxes	$	101.4		$	(319.8	)	$	(223.2	)	$	101.4		$	(195.5	)	$	(390.9	)
Less: Series A Convertible Preferred Stock dividends	115.1			—			—			115.1			—			—
Less: Net income attributable to noncontrolling interests	3.8			—			1.7			3.8			4.8			1.7
Loss from continuing operations attributable to common stockholders, after allocation of earnings to participating securities	(17.5		)	(319.8		)	(224.9		)	(17.5		)	(200.3		)	(392.6		)
Loss from discontinued operations attributable to common stockholders, after allocation of earnings to participating securities	(2.7		)	(12.1		)	(3.0		)	(2.7		)	(16.2		)	(6.4		)
Net loss attributable to common stockholders, after allocation of earnings to participating securities	$	(20.2	)	$	(331.9	)	$	(227.9	)	$	(20.2	)	$	(216.5	)	$	(399.0	)

EPS denominator:
Weighted average shares outstanding — basic and diluted	96.8			18.3			18.3			96.8			18.3			18.3

Basic and diluted EPS attributable to common stockholders:
Loss from continuing operations	$	(0.18	)	$	(17.44	)	$	(12.30	)	$	(0.18	)	$	(10.93	)	$	(21.47	)
Loss from discontinued operations	(0.03		)	(0.66		)	(0.16		)	(0.03		)	(0.88		)	(0.35		)
Net loss attributable to common stockholders	$	(0.21	)	$	(18.10	)	$	(12.46	)	$	(0.21	)	$	(11.81	)	$	(21.82	)

In accordance with the Plan, each share of the Predecessor Company’s common stock outstanding prior to the Effective Date, including all options and warrants to purchase such stock, were extinguished, canceled and discharged, and each such share, option or warrant has no further force or effect after the Effective Date. Furthermore, all of the Predecessor Company’s equity award agreements under prior incentive plans, and the equity awards granted pursuant thereto, were extinguished, canceled and discharged and have no further force or effect after the Effective Date.

As of June 30, 2017, approximately 11.7 million shares of the Preferred Stock had been converted and less than 0.1% of the Warrants remained unexercised, which together resulted in the issuance of an additional 29.2 million shares of Common Stock.