Net Loss Per Share

3 Months Ended

Mar. 31, 2016

(10) Net Loss Per Share:

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



	For the three months ended
($ in millions and shares in thousands, except per share amounts)	March 31,

	2016		2015
Net loss used for basic and diluted earnings
per share:
Net loss attributable to Frontier common shareholders	$	(240)	$	(51)
Less: Dividends paid on unvested restricted stock awards		(1)		(1)
Total basic and diluted net loss
attributable to Frontier common shareholders	$	(241)	$	(52)

Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		1,170,422		1,002,173
Less: Weighted average unvested restricted stock awards		(6,381)		(7,457)
Total weighted average shares outstanding - basic		1,164,041		994,716

Basic net loss per share
attributable to Frontier common shareholders	$	(0.21)	$	(0.05)

Diluted earnings per share:
Total weighted average shares outstanding - basic		1,164,041		994,716
Effect of dilutive shares		-		-
Total weighted average shares outstanding - diluted		1,164,041		994,716

Diluted net loss per share
attributable to Frontier common shareholders	$	(0.21)	$	(0.05)

In calculating diluted net loss per share for the three months ended March 31, 2016 and 2015, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive.

Stock Options

For the three months ended March 31, 2016 and 2015, options to purchase 50,000 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 March 31, 2016 and 2015, we had 1,537,000 and 1,166,000 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 $2 million and $1 million for the three months ended March 31, 2016 and 2015, 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 March 31, 2016, as their impact was antidilutive.