Earnings per Share

3 Months Ended

Mar. 31, 2020

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 March 31,
In millions, except per share amounts	2020		2019
Net income (loss) attributable to common stockholders	$	168	$	(10	)
Weighted average outstanding shares of common stock	110.3		117.1
Dilutive effect of employee stock options, restricted stock and other stock awards	1.0		—
Common stock and common stock equivalents	111.3		117.1
Net income (loss) per share:
Basic	$	1.52	$	(0.09	)
Diluted	$	1.51	$	(0.09	)

For the first quarter of 2019, due to the net loss attributable to Teradata common stockholders, potential common shares that would cause dilution, such as employee stock options, restricted shares and other stock awards, have been excluded from the diluted share count because their effect would have been anti-dilutive. The fully diluted shares would have been 118.7 million for the first quarter of 2019.

Options to purchase 2.2 million shares of common stock for the three months ended March 31, 2020 and 2.1 million shares of common stock for the three months ended March 31, 2019 were not included in the computation of diluted

earnings per share because their exercise prices of these options were greater than the average market price of the common shares for the period, and therefore would have been anti-dilutive.