Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock method and in periods of income, reflects the additional shares that would be outstanding if dilutive stock options were exercised for common shares during the period.

Earnings (loss) per share were computed as follows (dollars in millions, except share data):



	Year Ended December 31,
	2017		2016			2015
Basic:
Net income (loss)	$	17	$	(137	)	$	(158	)
Weighted-average shares outstanding⁽¹⁾	53,021,761		51,579,112			50,996,297
Basic earnings (loss) per share	$	0.33	$	(2.65	)	$	(3.10	)

Diluted:
Net income (loss)	$	17	$	(137	)	$	(158	)
Weighted-average shares outstanding⁽¹⁾	53,021,761		51,579,112			50,996,297
Dilutive shares⁽²⁾	667,071		—			—
Diluted weighted-average shares outstanding	53,688,832		51,579,112			50,996,297
Diluted earnings (loss) per share	$	0.32	$	(2.65	)	$	(3.10	)

(1) In periods of net loss, restricted stock awards that are classified as participating securities are excluded from the weighted-average shares outstanding computation.
(2) In periods of net loss, options are anti-dilutive and therefore excluded from the earnings (loss) per share calculation.

There were 259,142 outstanding options to purchase common shares that were anti-dilutive and excluded from the earnings per share calculation as of December 31, 2017 compared to 1,391,567 and 1,421,506 excluded for the periods ended December 31, 2016 and 2015, respectively. Anti-dilutive securities consist primarily of stock appreciation rights (“SARs”) with an exercise price greater than the average market closing price of the Class A common stock.