Note 19 - Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 19: EARNINGS PER SHARE

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 the three months ended March 31, 2020 follows (in millions):

	Three Months Ended
	March 31,
(in millions)	2020			2019
Loss from continuing operations	$	(111	)	$	(12	)
Less: Series A convertible preferred stock cash dividend		(3	)		(3	)
Less: Series A convertible preferred stock deemed dividend		(2	)		(2	)
Loss from continuing operations available to common    shareholders - basic and diluted	$	(116	)	$	(17	)
Net loss	$	(111	)	$	(18	)
Less: Series A convertible preferred stock cash dividend		(3	)		(3	)
Less: Series A convertible preferred stock deemed dividend		(2	)		(2	)
Net loss available to common shareholders - basic and diluted	$	(116	)	$	(23	)

(in millions of shares)
Weighted average shares — basic and diluted	43.6	42.9

As a result of the net loss from continuing operations available to common shareholders for the three months ended March 31, 2020 and 2019, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding.  If Kodak reported earnings from continuing operations available to common shareholders for the three months ended March 31, 2020 and 2019, the calculation of diluted earnings per share would have included the assumed conversion of 0.3 million and 0.4 million unvested restricted stock units, respectively.

The computation of diluted earnings per share for the three months ended March 31, 2020 and 2019 also excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A Preferred Stock and (2) the assumed conversion of outstanding employee stock options of 6.8 million and 7.0 million, respectively, because the effects would have been anti-dilutive.  In addition, the computation of diluted earnings per share for the three months ended March 31, 2020 also excluded the assumed conversion of $100 million of Convertible Notes because the effect would have been anti-dilutive.