Earnings Per Share

6 Months Ended

Jun. 30, 2015

Basic earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares resulting from stock options, restricted stock awards and other stock awards. The components of basic and diluted earnings per share are as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
In millions, except per share amounts	2015			2014		2015			2014
Net (loss) income attributable to common stockholders	$	(265	)	$	96	$	(243	)	$	155
Weighted average outstanding shares of common stock	141.9			156.9		143.6			157.7
Dilutive effect of employee stock options, restricted stock and other stock awards	—			2.5		—			2.5
Common stock and common stock equivalents	141.9			159.4		143.6			160.2
Earnings per share:
Basic	$	(1.87	)	$	0.61	$	(1.69	)	$	0.98
Diluted	$	(1.87	)	$	0.60	$	(1.69	)	$	0.97

For the three and six months ended June 30, 2015, due to the net loss attributable to Teradata common stockholders, largely due to the goodwill impairment charge, potential common shares that would cause dilution, such as employee stock options, restricted stock and other stock awards, have been excluded from the diluted share count because their effect would have been anti-dilutive. For the three months ended June 30, 2015, the fully diluted shares would have been 144.4 million and for the six months ended June 30, 2015, the fully diluted shares would have been 146.1 million.

Certain options to purchase shares of common stock were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the period, and therefore would have been anti-dilutive. For the three months ended June 30, 2015 and June 30, 2014 there were 2.9 million and 2.2 million shares of common stock excluded from the computation of diluted earnings per share. For the six months ended June 30, 2015 and June 30, 2014 there were 3.0 million and 2.2 million shares of common stock excluded from the computation of diluted earnings per share.