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 include any dilutive effect of potential common shares. In periods with a net loss from continuing operations 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 quarter and nine months ended September 30, 2019 and 2018 follows (in millions):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2019			2018			2019			2018
(Loss) income from continuing operations	$	(10	)	$	20		$	(28	)	$	(2	)
Less: Series A convertible preferred stock cash dividend		(2	)		(2	)		(8	)		(8	)
Less: Series A convertible preferred stock deemed dividend		(3	)		(3	)		(7	)		(7	)
(Loss) income from continuing operations available to common shareholders - basic and diluted	$	(15	)	$	15		$	(43	)	$	(17	)

Net (loss) income	$	(5	)	$	19		$	178		$	(2	)
Less: Series A convertible preferred stock cash dividend		(2	)		(2	)		(8	)		(8	)
Less: Series A convertible preferred stock deemed dividend		(3	)		(3	)		(7	)		(7	)
Net (loss) income available to common shareholders - basic and diluted	$	(10	)	$	14		$	163		$	(17	)

(in millions of shares)
Weighted average shares - basic	43.0	42.7	43.0	42.7
Effect of dilutive securities
Unvested restricted stock units	—	0.3	—	—
Weighted average shares - diluted EPS calculation	43.0	43.0	43.0	42.7

As a result of the net loss from continuing operations available to common shareholders for the quarter and nine months ended September 30, 2019 and the nine months ended September 30, 2018, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding for those periods. If Kodak reported earnings from continuing operations available to common shareholders for the quarter and nine months ended September 30, 2019 and the nine months ended September 30, 2018, the calculation of diluted earnings per share would have included the assumed conversion of 0.6 million unvested restricted stock units for both periods in 2019 and 0.2 million of unvested restricted stock units for the nine months ended September 30, 2018.

The computation of diluted earnings per share for the quarter and nine months ended September 30, 2019 and 2018 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A convertible preferred shares and (2) the assumed conversion of outstanding employee stock options of 8.9 million and 9.0 million in the quarter and nine months ending September 30, 2019, respectively, and 5.2 million and 5.0 million in the quarter and nine months ending September 30, 2018, respectively, because the effects would have been anti-dilutive. The computation of diluted earnings per share for the quarter and nine months ending September 30, 2019 also excluded the assumed conversion of $100 million of Convertible Notes because the effects would have been anti-dilutive.