Earnings Per Share

12 Months Ended

Dec. 31, 2015

Note 17: Earnings Per Share

Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock and restricted stock units to certain employees and non-employee directors in accordance with the Company’s long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company.

Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all stock options, warrants and unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from stock options, warrants and unvested restricted stock are calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the exercise of stock options and warrants or the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company’s common stock at the average market price during the period. For the years ended December 31, 2015, 2014 and 2013 there were 17,967,871 , 31,907,852 and 43,210,917 , respectively, of stock options, warrants and unvested restricted stock outstanding that were antidilutive.

The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013:

		Years Ended December 31,
$ in millions except share and per share amounts		2015		2014			2013
Basic earnings per share:
	Net income (loss)	$	180	$	569	$	250
	Less: undistributed earnings allocated to participating securities		6		16		5
	Net income (loss) available to common shareholders		174		553		245

	Basic weighted average shares⁽¹⁾		163,936,318		188,171,503		189,071,011

	Net income (loss) per basic common share	$	1.06	$	2.94	$	1.30

Diluted earnings per share:
	Net income (loss)	$	180	$	569	$	250
	Less: undistributed earnings allocated to participating securities		6		15		5
	Less: mark-to-market gain (loss) on warrants		-		28		-
	Net income (loss) available to common shareholders		174		526		245

	Basic weighted average shares⁽¹⁾		163,936,318		188,171,503		189,071,011
	Effect of common stock equivalents:
	Stock options		933,470		1,104,247		1,241,902
	Warrants		-		1,622,877		-
	Diluted weighted average shares		164,869,788		190,898,627		190,312,913

	Net income (loss) per diluted common share	$	1.06	$	2.76	$	1.29


	(1) Includes 617,909, 412,769 and 629,896 of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend
	equivalents for the years ended December 31, 2015, 2014 and 2013, respectively.