Earnings per Share

As previously disclosed in Note 1 - Basis of Presentation, a one-for-four reverse stock split became effective on June 14, 2017 for all authorized, issued and outstanding shares of Xerox common stock. Accordingly, all share and per share amounts have been adjusted to reflect this reverse stock split for all prior periods presented.

The following table sets forth the computation of basic and diluted earnings per share of common stock (shares in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Basic Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	176		$	175		$	388		$	437
Accrued dividends on preferred stock	(4		)	(6		)	(11		)	(18		)
Adjusted Net income from continuing operations available to common shareholders	172			169			377			419
Net income (loss) from discontinued operations attributable to Xerox	3			8			(3		)	(65		)
Adjusted Net income available to common shareholders	$	175		$	177		$	374		$	354

Weighted average common shares outstanding	254,510			253,430			254,259			253,340
Basic Earnings (Loss) per Share:
Continuing operations	$	0.68		$	0.66		$	1.49		$	1.65
Discontinued operations	0.01			0.03			(0.01		)	(0.25		)
Basic Earnings per Share	$	0.69		$	0.69		$	1.48		$	1.40

Diluted Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	176		$	175		$	388		$	437
Accrued dividends on preferred stock	—			(6		)	(11		)	(18		)
Adjusted Net income from continuing operations available to common shareholders	176			169			377			419
Net income (loss) from discontinued operations attributable to Xerox	3			8			(3		)	(65		)
Adjusted Net income available to common shareholders	$	179		$	177		$	374		$	354

Weighted average common shares outstanding	254,510			253,430			254,259			253,340
Common shares issuable with respect to:
Stock options	—			150			—			173
Restricted stock and performance shares	2,133			2,744			2,170			2,081
Convertible preferred stock	6,742			—			—			—
Adjusted Weighted average common shares outstanding	263,385			256,324			256,429			255,594
Diluted Earnings (Loss) per Share:
Continuing operations	$	0.67		$	0.66		$	1.47		$	1.64
Discontinued operations	0.01			0.03			(0.01		)	(0.26		)
Diluted Earnings per Share	$	0.68		$	0.69		$	1.46		$	1.38

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options	—			327			—			304
Restricted stock and performance shares	3,890			5,658			3,852			6,321
Convertible preferred stock	—			6,742			6,742			6,742
Total Anti-Dilutive Securities	3,890			12,727			10,594			13,367

Dividends per Common Share	$	0.25		$	0.31		$	0.75		$	0.93