EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

2.     EARNINGS PER SHARE

Basic earnings per share are computed by dividing earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the additional dilution from all potentially dilutive securities.

The following computation of basic and diluted earnings per share applicable to the Company's common stock is as follows:

			Year Ended June 30,
			2011			2010		2009
			(in 000s, except per share amounts)
Amounts attributable to Bally Technologies, Inc.:
Income from continuing operations, net of tax			$	98,666		$	109,223	$	119,439
Income from discontinued operations, net of tax				—			6,175		6,870
Gain (loss) on sale of discontinued operations, net of tax				(403	)		22,079		—
Net income attributable to Bally Technologies, Inc.			$	98,263		$	137,477	$	126,309
	After tax interest expense on convertible debt			—			14		160
Diluted earnings attributable to Bally Technologies, Inc.			$	98,263		$	137,491	$	126,469
Weighted average common shares outstanding				51,960			54,576		54,449
	Dilutive effect of:
		Stock options, Restricted Stock Units ("RSU") and restricted stock		2,459			3,063		2,423
		Warrants		1			14		7
		Convertible debt(1)		—			22		179
	Weighted average diluted shares outstanding			54,420			57,675		57,058
Basic earnings per share attributable to Bally Technologies, Inc.:
Income from continuing operations			$	1.90		$	2.00	$	2.19
Income from discontinued operations				—			0.11		0.13
Gain (loss) on sale of discontinued operations				(0.01	)		0.41		—
Basic earnings per share			$	1.89		$	2.52	$	2.32
Diluted earnings per share attributable to Bally Technologies, Inc.:
Income from continuing operations			$	1.82		$	1.89	$	2.10
Income from discontinued operations				—			0.11		0.12
Gain (loss) on sale of discontinued operations				(0.01	)		0.38		—
Diluted earnings per share			$	1.81		$	2.38	$	2.22

(1)

The Company had certain related party debt outstanding which was convertible into common stock at the Company's discretion. The related party debt was paid in full in December 2009.

Certain securities were excluded from the diluted per share calculation because their inclusion would be anti-dilutive. Such securities consist of the following:

	Year Ended June 30,
	2011		2010		2009
	(in 000s)
Stock options, RSU and restricted stock		688		308		1,975