EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2012

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,
	2012		2011			2010
	(in 000s, except per share amounts)
Amounts attributable to Bally Technologies, Inc.:
Income from continuing operations, net of tax	$	101,148	$	98,666		$	109,223
Income from discontinued operations, net of tax		—		—			6,175
Gain (loss) on sale of discontinued operations, net of tax		—		(403	)		22,079
Net income attributable to Bally Technologies, Inc.	$	101,148	$	98,263		$	137,477
After tax interest expense on convertible debt		—		—			14
Diluted earnings attributable to Bally Technologies, Inc.	$	101,148	$	98,263		$	137,491
Weighted average common shares outstanding		42,985		51,960			54,576
Dilutive effect of:
Stock options, Restricted Stock Units ("RSU") and restricted stock		1,435		2,459			3,063
Warrants		—		1			14
Convertible debt(1)		—		—			22
Weighted average diluted shares outstanding		44,420		54,420			57,675
Basic earnings per share attributable to Bally Technologies, Inc.:
Income from continuing operations	$	2.35	$	1.90		$	2.00
Income from discontinued operations		—		—			0.11
Gain (loss) on sale of discontinued operations		—		(0.01	)		0.41
Basic earnings per share	$	2.35	$	1.89		$	2.52
Diluted earnings per share attributable to Bally Technologies, Inc.:
Income from continuing operations	$	2.28	$	1.82		$	1.89
Income from discontinued operations		—		—			0.11
Gain (loss) on sale of discontinued operations		—		(0.01	)		0.38
Diluted earnings per share	$	2.28	$	1.81		$	2.38

(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,
	2012		2011		2010
	(in 000s)
Stock options, RSU and restricted stock		574		688		308