Earnings per Share

9 Months Ended

Jun. 30, 2014

Earnings per Share

Earnings per Share

11.Earnings per Share

The following table sets forth the computations of basic and diluted EPS for the periods indicated, reflecting the amounts attributable to Headwaters and excluding the amounts attributable to the non-controlling interest in Entegra. In accordance with ASC 260, income (loss) from continuing operations for each period is used as the control number in determining whether potentially dilutive common shares should be included in the diluted earnings per share computations for those periods, even when the effect of doing so is anti-dilutive to the other per-share amounts.

	Three Months Ended June 30,					Nine Months Ended June 30,
(in thousands, except per-share amounts)	2013		2014			2013			2014
Numerator:
Income (loss) from continuing operations	$	9,248	$	11,124		$	(4,909	)	$	(517	)
Income from continuing operations attributable to non-controlling interest	0		(389		)	0			(619		)
Fair value adjustment of non-controlling interest	0		(158		)	0			(158		)
Numerator for basic and diluted earnings per share from continuing operations — income (loss) from continuing operations attributable to Headwaters Incorporated	9,248		10,577			(4,909		)	(1,294		)
Numerator for basic and diluted earnings per share from discontinued operations — income (loss) from discontinued operations, net of income taxes	1,768		(231		)	1,793			(106		)
Numerator for basic and diluted earnings per share — net income (loss) attributable to Headwaters Incorporated	$	11,016	$	10,346		$	(3,116	)	$	(1,400	)
Denominator:
Denominator for basic earnings per share — weighted-average shares outstanding	72,892		73,206			69,195			73,131
Effect of dilutive securities —  shares issuable upon exercise of optionsand SARs and vesting of restricted stock	1,247		1,380			0			0
Denominator for diluted earnings per share — weighted-average shares outstanding after assumed exercises and vesting	74,139		74,586			69,195			73,131
Basic and diluted income (loss) per share from continuing operations	$	0.13	$	0.14		$	(0.07	)	$	(0.02	)
Basic and diluted income per share from discontinued operations	0.02		0.00			0.02			0.00
Basic and diluted income (loss) per share	$	0.15	$	0.14		$	(0.05	)	$	(0.02	)
Anti-dilutive securities not considered in diluted EPS calculation:
SARs	775		691			2,877			3,836
Stock options	893		377			1,002			530
Restricted stock	0		0			140			253