EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

3 Months Ended

Sep. 30, 2023

EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 3.5 million and 4.4 million shares for the three months ended September 30, 2023 and 2022 respectively, as the effect would be antidilutive due to the net loss from continuing operations during the periods.

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:


(in 000s, except per share amounts)
	Three months ended September 30,
		2023		2022
Net loss from continuing operations attributable to shareholders		$	(162,873)	$	(167,367)
Amounts allocated to participating securities		(177)		(179)
Net loss from continuing operations attributable to common shareholders		$	(163,050)	$	(167,546)

Basic weighted average common shares		146,273		159,284
Potential dilutive shares		—		—
Dilutive weighted average common shares		146,273		159,284

Loss per share from continuing operations attributable to common shareholders:
Basic		$	(1.11)	$	(1.05)
Diluted		(1.11)		(1.05)

The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years.

STOCK-BASED COMPENSATION – We granted 1.6 million and 0.9 million shares, including adjustments for performance achievement and dividend equivalents, under our stock-based compensation plans during the three months ended September 30, 2023 and 2022, respectively. Stock-based compensation expense of our continuing operations totaled $7.6 million and $7.7 million for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, unrecognized compensation cost for nonvested shares and units totaled $67.6 million.