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Note 15 - Earning Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 15: EARNINGS PER SHARE

Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share computations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, 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 three and nine months ended September 30, 2022 and 2021 follows:

		*Three Months Ended*								*Nine Months Ended*
		*September 30,*								*September 30,*
(in millions)		*2022*				*2021*				*2022*				*2021*
Net income		$	2			$	8			$	19			$	30
Less: Preferred stock cash dividends			(1	)			(1	)			(3	)			(4	)
Less: Preferred stock in-kind dividends			(2	)			(1	)			(4	)			(3	)
Less: Preferred stock deemed dividends			—				(1	)			(1	)			(3	)
Plus: Expiration of Series A preferred stock embedded derivative			—				—				—				11
Less: Earnings attributable to Series C Preferred shareholders			—				—				(2	)			—
Net (loss) income available to common shareholders - basic and diluted		$	(1	)		$	5			$	9			$	31

		*Three Months Ended*								*Nine Months Ended*
		*September 30,*								*September 30,*
(in millions of shares)		*2022*				*2021*				*2022*				*2021*
Weighted average shares — basic			79.0				78.6				78.9				78.3
Effect of dilutive securities
Employee stock options			—				1.9				1.2				2.1
Unvested restricted stock units			—				0.1				0.6				0.1
Weighted average shares — diluted			79.0				80.6				80.7				80.5

As a result of the net loss available to common shareholders for the three months ended September 30, 2022, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak reported income available to common shareholders for the three months ended September 30, 2022, the calculation of diluted earnings per share would have included the assumed vesting of 0.7 million unvested restricted stock units and the assumed exercise of 1.3 million outstanding stock options.

The computation of diluted earnings per share for the three and nine months ended September 30, 2022 excluded the impact of (1) the assumed conversion of $25 million of Convertible Notes issued in 2021, (2) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (3) the assumed conversion of 1.1 million shares of Series C Preferred Stock and (4) the assumed exercise of 3.3 million and 3.4 million outstanding employee stock options, respectively, because the effects would have been anti-dilutive.

The computation of diluted earnings per share for the three and nine months ended September 30, 2021 excluded the impact of (1) the assumed conversion of $25 million of Convertible Notes issued in 2021, (2) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (3) the assumed conversion of 1.0 million shares of Series C Preferred Stock, (4) the assumed exercise of 3.1 million outstanding employee stock options and (5) the assumed vesting of 0.0 million and 0.3 million unvested restricted stock units, respectively, because the effects would have been anti-dilutive.