Note 9 — Earnings per Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, shares issuable upon vesting of restricted stock awards, and shares to be issued upon conversion of convertible debt.

We used the “if converted” method in calculating the diluted earnings per share effect of the assumed conversion of our contingently convertible debt because the principal can be settled in stock, cash, or a combination thereof. Under the “if converted” method, the after-tax effect of interest expense related to the convertible securities is added back to net income, and the convertible debt is assumed to have been converted into common shares at the beginning of the period.

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our unvested time-based restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on shares of common stock. During periods of net income, the calculation of earnings per share for common stock excludes income attributable to unvested restricted stock awards from the numerator and excludes the dilutive impact of those shares from the denominator. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following table provides a reconciliation of the computations of basic and diluted earnings per share information for the three- and nine-month periods ended February 28, 2015 and 2014.

	Three Months Ended						Nine Months Ended
	February 28,						February 28,
	2015			2014			2015			2014
Income from continuing operations	$	1.9		$	16.9		$	27.6		$	52.3
Less income attributable to participating shares	(0.1		)	(0.4		)	(0.6		)	(1.2		)
Income from continuing operations attributable to common shareholders	1.8			16.5			27.0			51.1
Income (Loss) from discontinued operations attributable to common shareholders	(36.4		)	1.0			(32.5		)	3.5
Net income (loss) attributable to common shareholders	$	(34.6	)	$	17.5		$	(5.5	)	$	54.6

Weighted average common shares outstanding— basic	38.7			38.6			38.7			38.6
Additional shares from the assumed exercise exercise of stock options	0.5			0.5			0.5			0.5
Weighted average common shares outstanding — diluted	39.2			39.1			39.2			39.1

Earnings per share — basic:
Earnings from continuing operations	$	0.05		$	0.43		$	0.70		$	1.32
Earnings (Loss) from discontinued operations	(0.94		)	0.02			(0.84		)	0.09
Earnings (Loss) per share — basic	$	(0.89	)	$	0.45		$	(0.14	)	$	1.41

Earnings per share — diluted:
Earnings from continuing operations	$	0.05		$	0.43		$	0.69		$	1.31
Earnings (Loss) from discontinued operations	(0.94		)	0.02			(0.84		)	0.09
Earnings (Loss) per share — diluted	$	(0.89	)	$	0.45		$	(0.15	)	$	1.40

At February 28, 2015 and 2014, respectively, stock options to purchase 169,163 shares and 170,000 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of each of these options was greater than the average market price of the common shares during the interim periods then ended.