Note 22 - Earnings Per Share

12 Months Ended

Dec. 31, 2020

NOTE 22: EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss from continuing operations, 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 years ended December 31, 2020 and 2019 follows (in millions):

	Year Ended December 31,
	2020			2019
Loss from continuing operations attributable to Eastman Kodak Company	$	(544	)	$	(91	)
Less: Series A Preferred Stock cash and accrued dividends		(11	)		(11	)
Less: Series A Preferred Stock deemed dividends		(9	)		(9	)
Loss from continuing operations available to common shareholders - basic and diluted	$	(564	)	$	(111	)

Net (loss) income attributable to Eastman Kodak Company	$	(541	)	$	116
Less: Series A Preferred Stock cash and accrued dividends		(11	)		(11	)
Less: Series A Preferred Stock deemed dividends		(9	)		(9	)
Net (loss) income available to common shareholders - basic and diluted	$	(561	)	$	96

As a result of the net loss from continuing operations available to common shareholders for the years ended December 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 years ended December 31, 2020 and 2019, the calculation of diluted earnings per share would have included the assumed conversion of 0.6 million unvested restricted stock units for both periods and 0.7 million stock options for the year ended December 31, 2020.

The computation of diluted earnings per share for the years ended December 31, 2020 and 2019 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A Preferred Stock, and (2) the assumed conversion of 4.0 million and 6.8 million outstanding employee stock options, respectively, because they would have been anti-dilutive. The computation of diluted earnings per share for the year ended December 31, 2019 also excluded the assumed conversion of $100 million of Convertible Notes because the effects would have been anti-dilutive.