14. Stockholders’ Equity

Earnings Per Share The Company’s basic earnings per share (EPS) is computed based on the average number of shares of common stock outstanding for the period and includes the effect of any participating securities and TEUs as appropriate. Diluted EPS includes the effect of the Company’s outstanding stock options, restricted stock awards, restricted stock units, and TEUs, if the inclusion of these items is dilutive.

The following provides a reconciliation between basic and diluted EPS attributable to common stockholders:



	Three Months Ended March 31,
millions except per-share amounts	2018			2017
Net income (loss)
Net income (loss) attributable to common stockholders	$	121		$	(318	)
Income (loss) effect of TEUs	(3		)	(2		)
Less distributions on participating securities	1			—
Basic	$	117		$	(320	)
Income (loss) effect of TEUs	(1		)	—
Diluted	$	116		$	(320	)
Shares
Average number of common shares outstanding—basic	518			551
Dilutive effect of stock options	1			—
Average number of common shares outstanding—diluted	519			551
Excluded due to anti-dilutive effect	10			11
Net income (loss) per common share
Basic	$	0.23		$	(0.58	)
Diluted	$	0.22		$	(0.58	)

Common Stock The Company announced a $2.5 billion share-repurchase program in September 2017, which was expanded to $3.0 billion in February 2018 ($3.0 Billion Share-Repurchase Program). The program authorizes the repurchase of the Company’s common stock in the open market or through private transactions through the end of 2018. In February 2018, Anadarko completed the repurchase of 8.5 million shares of its common stock for $500 million (average price of $58.82 per share) under an ASR Agreement. All of the repurchased shares were classified as treasury stock.

In March 2018, Anadarko entered into an additional ASR Agreement to repurchase the remaining $1.4 billion of the Company’s common stock under the $3.0 Billion Share-Repurchase Program. Under the terms of the agreement, the Company paid $1.4 billion in cash and received an initial delivery of 19.1 million shares of the Company’s common stock. The initial delivery of shares represented the minimum number of shares to be repurchased under the agreement. The value of the initial 19.1 million shares delivered on the date of purchase was $1.1 billion (average price of $58.16 per share) and was recorded in treasury stock, with the remaining $332 million recorded in paid-in capital on the Company’s Consolidated Balance Sheet at March 31, 2018. The final number of shares to be delivered upon settlement of this ASR Agreement will be determined in the second quarter of 2018 with reference to the volume-weighted average price of the shares during the term of the agreement less a negotiated settlement price adjustment. The value recorded in paid-in capital at March 31, 2018, will be transferred to treasury stock upon final settlement. The $3.0 Billion Share-Repurchase Program is expected to be completed in the second quarter of 2018.

These transactions were accounted for as equity transactions. For shares received and recorded as treasury stock, these shares reduced the average number of shares of common stock outstanding used to compute both basic and diluted EPS.