NOTE 19: EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss from continuing operations, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.

A reconciliation of the amounts used to calculate basic and diluted earnings per share for the years ended December 31, 2017 and 2016 follows (in millions):

	Year Ended December 31,
	2017			2016
Earnings from continuing operations attributable to Eastman Kodak Company	$	96		$	17
Less: Series A convertible preferred stock cash dividends		(11	)		(2	)
Less: Series A convertible preferred stock deemed dividends		(8	)		(1	)
Earnings from continuing operations available to common shareholders - basic and diluted	$	77		$	14

Net income attributable to Eastman Kodak Company	$	94		$	15
Less: Series A convertible preferred stock cash dividends		(11	)		(2	)
Less: Series A convertible preferred stock deemed dividends		(8	)		(1	)
Net income available to common shareholders - basic and diluted	$	75		$	12

Weighted-average common shares outstanding - basic	42.5	42.2
Effect of dilutive securities:
Unvested restricted stock units	0.2	0.3
Weighted-average common shares outstanding - diluted	42.7	42.5

The computation of diluted earnings per share for the years ended December 31, 2017 and 2016 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A convertible preferred shares, (2) the assumed conversion of net share settled warrants to purchase 1.8 million shares of common stock at an exercise price of $14.93, (3) the assumed conversion of net share settled warrants to purchase 1.8 million shares of common stock at an exercise price of $16.12 and (4) the assumed conversion of 4.8 million and 2.2 million, respectively, outstanding employee stock options because they would have been anti-dilutive.

As a result of the net loss from continuing operations for the year ended December 31, 2015 Kodak calculated diluted earnings per share using weighted-average basic shares outstanding for those periods. If Kodak had reported earnings from continuing operations for the year ended December 31, 2015, the following potential shares of its common stock would have been dilutive in the computation of diluted earnings per share:

	Year Ended December 31,
(in millions of shares)	2015
Unvested share-based awards		0.2
Warrants to purchase common shares		0.3
Total		0.5

The computation of diluted earnings per share for the year ended December 31, 2015 also excluded outstanding employee stock options of 1.6 million because the effects would have been anti-dilutive.