Note 13. Earnings per Share

Basic earnings per share is calculated by dividing net earnings attributable to RRD common stockholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are excluded if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of the Company’s stock price during the applicable period. In periods when the Company is in a net loss from continuing operations, share-based awards are excluded from the calculation of earnings per share as their inclusion would have an antidilutive effect.

During the years ended December 31, 2017, 2016 and 2015, no shares of common stock were purchased by the Company, however, shares were withheld for tax liabilities upon the vesting of equity awards. During the year ended December 31, 2015, the Company issued approximately 2.7 million shares of common stock in conjunction with acquisitions.

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2017, 2016 and 2015 were as follows:

	2017			2016			2015
Basic net (loss) earnings per share attributable to RRD common stockholders:
Continuing operations	$	(0.49	)	$	(6.95	)	$	(0.28	)
Discontinued operations		—			(0.14	)		2.48
Net (loss) earnings attributable to RRD stockholders	$	(0.49	)	$	(7.09	)	$	2.20
Diluted net (loss) earnings per share attributable to RRD common stockholders:
Continuing operations	$	(0.49	)	$	(6.95	)	$	(0.28	)
Discontinued operations		—			(0.14	)		2.48
Net (loss) earnings attributable to RRD stockholders	$	(0.49	)	$	(7.09	)	$	2.20
Numerator:
Net loss attributable to RRD common stockholders - continuing operations	$	(34.4	)	$	(486.2	)	$	(19.0	)
(Loss) income from discontinued operations, net of tax (Note 2)		—			(9.7	)		170.1
Net (loss) earnings attributable to RRD common stockholders	$	(34.4	)	$	(495.9	)	$	151.1
Denominator:
Weighted average number of common shares outstanding		70.2			70.0			68.5
Dilutive options and awards		—			—			—
Diluted weighted average number of common shares outstanding		70.2			70.0			68.5
Weighted average number of anti-dilutive share-based awards:
Stock options		1.0			0.9			0.8
Performance share units		—			—			0.2
Restricted stock units		0.8			0.3			0.2
Total		1.8			1.2			1.2

Dividends declared per common share	$	0.56		$	2.48		$	3.12