Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2015

Net Income (Loss) Per Common Share [Abstract]

(11) Net Income (Loss) Per Share:

The reconciliation of the net income (loss) per share calculation is as follows:



	For the three months ended				For the nine months ended
($ in millions and shares in thousands, except per share amounts)	September 30,				September 30,

	2015		2014		2015		2014
Net income (loss) used for basic and diluted earnings
per share:
Net income (loss) attributable to Frontier common shareholders	$	(81)	$	42	$	(160)	$	119
Less: Dividends paid on unvested restricted stock awards		(1)		(1)		(2)		(2)
Total basic and diluted net income (loss)
attributable to Frontier common shareholders	$	(82)	$	41	$	(162)	$	117

Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		1,168,272		1,002,092		1,068,877		1,001,656
Less: Weighted average unvested restricted stock awards		(7,065)		(7,445)		(7,233)		(7,263)
Total weighted average shares outstanding - basic		1,161,207		994,647		1,061,644		994,393

Basic net income (loss) per share
attributable to Frontier common shareholders	$	(0.07)	$	0.04	$	(0.15)	$	0.12

Diluted earnings per share:
Total weighted average shares outstanding - basic		1,161,207		994,647		1,061,644		994,393
Effect of dilutive shares		-		3,208		-		3,351
Total weighted average shares outstanding - diluted		1,161,207		997,855		1,061,644		997,744

Diluted net income (loss) per share
attributable to Frontier common shareholders	$	(0.07)	$	0.04	$	(0.15)	$	0.12

Stock Options

For the three and nine months ended September 30, 2015 and 2014, options to purchase 68,000 and 83,000 shares, respectively, issuable under employee compensation plans were excluded from the computation of diluted earnings per share (EPS) for those periods because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be antidilutive. In calculating diluted EPS, we apply the treasury stock method and include future unearned compensation as part of the assumed proceeds.

Stock Units

At September 30, 2015 and 2014, we had 1,334,633 and 1,050,568 stock units, respectively, issued under our Non-Employee Directors’ Deferred Fee Equity Plan (Deferred Fee Plan) and the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan). These securities have not been included in the diluted income per share of common stock calculation because their inclusion would have an antidilutive effect. Compensation costs associated with the issuance of stock units were $(1) million and $3 million for the nine months ended September 30, 2015 and 2014, respectively.

Mandatory Convertible Preferred Stock

The impact of the common share equivalents associated with the 19,250,000 shares of Series A Preferred stock described above were not included in the calculation of diluted EPS as of September 30, 2015, as their impact was anti-dilutive.

In calculating diluted net loss per share for the three and nine months ended September 30, 2015, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive.