The computation of diluted EPS for the Successor Company excluded aggregate share-based compensation awards of less than 0.1 million for the period April 2 through December 31, 2017. The computation of diluted EPS for the Predecessor Company excluded aggregate share-based compensation awards of approximately 0.2 million, 0.4 million and 0.6 million for the period January 1 through April 1, 2017, and the years ended December 31, 2016 and 2015, 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
	April 2 through December 31, 2017			January 1 through April 1, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	(In millions, except per share amounts)
EPS numerator:
Income (loss) from continuing operations, net of income taxes	$	713.1		$	(195.5	)	$	(663.8	)	$	(1,783.2	)
Less: Series A Convertible Preferred Stock dividends	179.5			—			—			—
Less: Net income attributable to noncontrolling interests	15.2			4.8			7.9			7.1
Income (loss) from continuing operations attributable to common stockholders, before allocation of earnings to participating securities	518.4			(200.3		)	(671.7		)	(1,790.3		)
Less: Earnings allocated to participating securities	129.0			—			—			—
Income (loss) from continuing operations attributable to common stockholders, after allocation of earnings to participating securities ⁽¹⁾	389.4			(200.3		)	(671.7		)	(1,790.3		)
Loss from discontinued operations, net of income taxes	(19.8		)	(16.2		)	(57.6		)	(175.0		)
Less: Loss from discontinued operations allocated to participating securities	(4.9		)	—			—			—
Loss from discontinued operations attributable to common stockholders, after allocation of earnings to participating securities	(14.9		)	(16.2		)	(57.6		)	(175.0		)
Net income (loss) attributable to common stockholders, after allocation of earnings to participating securities ⁽¹⁾	$	374.5		$	(216.5	)	$	(729.3	)	$	(1,965.3	)

EPS denominator:
Weighted average shares outstanding — basic	101.1			18.3			18.3			18.1
Impact of dilutive securities	1.4			—			—			—
Weighted average shares outstanding — diluted ⁽²⁾	102.5			18.3			18.3			18.1

Basic EPS attributable to common stockholders:
Income (loss) from continuing operations	$	3.85		$	(10.93	)	$	(36.72	)	$	(98.65	)
Loss from discontinued operations	(0.15		)	(0.88		)	(3.15		)	(9.64		)
Net income (loss) attributable to common stockholders	$	3.70		$	(11.81	)	$	(39.87	)	$	(108.29	)

Diluted EPS attributable to common stockholders:
Income (loss) from continuing operations	$	3.81		$	(10.93	)	$	(36.72	)	$	(98.65	)
Loss from discontinued operations	$	(0.14	)	$	(0.88	)	$	(3.15	)	$	(9.64	)
Net income (loss) attributable to common stockholders	$	3.67		$	(11.81	)	$	(39.87	)	$	(108.29	)


⁽¹⁾	The reallocation adjustment for participating securities to arrive at the numerator to calculate diluted EPS was $1.2 million for the Successor period April 2 through December 31, 2017.


⁽²⁾	The two-class method assumes that participating securities are not exercised or converted. As such, weighted average diluted shares outstanding excluded 33.5 million shares related to the participating securities for the Successor period April 2 through December 31, 2017.

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 December 31, 2017, approximately 17.2 million shares of Preferred Stock had been converted and no Warrants remained unexercised, which together resulted in the issuance of an additional 40.0 million shares of Common Stock. As discussed in Note 13. “Current and Long-term Debt” and Note 18. “Stockholders’ Equity,” approximately 5.8 million shares of Common Stock had been repurchased as of December 31, 2017.