EARNINGS (LOSSES) PER COMMON SHARE

6 Months Ended

Mar. 31, 2021

NOTE 11 EARNINGS (LOSSES) PER COMMON SHARE

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, non-vested restricted stock and performance units.

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities.

The following table sets forth the computation of basic and diluted earnings (loss) per share:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands, except per share amounts)	2021		2020		2021		2020
Numerator:
Loss from continuing operations	$	(123,296)	$	(420,468)	$	(201,220)	$	(389,739)
Income (loss) from discontinued operations	2,293		(72)		9,786		(196)
Net loss	(121,003)		(420,540)		(191,434)		(389,935)
Adjustment for basic earnings (loss) per share
Earnings allocated to unvested shareholders	(354)		(1,003)		(714)		(1,994)

Numerator for basic earnings (loss) per share:
From continuing operations	(123,650)		(421,471)		(201,934)		(391,733)
From discontinued operations	2,293		(72)		9,786		(196)
	(121,357)		(421,543)		(192,148)		(391,929)
Adjustment for diluted earnings (loss) per share:
Effect of reallocating undistributed earnings of unvested shareholders	—		—		—		—

Numerator for diluted earnings (loss) per share:
From continuing operations	(123,650)		(421,471)		(201,934)		(391,733)
From discontinued operations	2,293		(72)		9,786		(196)
	$	(121,357)	$	(421,543)	$	(192,148)	$	(391,929)
Denominator:
Denominator for basic earnings (loss) per share - weighted-average shares	107,861		108,557		107,738		108,556
Effect of dilutive shares from stock options, restricted stock and performance units	—		—		—		—
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares	107,861		108,557		107,738		108,556

Basic earnings (loss) per common share:
Loss from continuing operations	$	(1.15)	$	(3.88)	$	(1.87)	$	(3.61)
Income from discontinued operations	0.02		—		0.09		—
Net loss	$	(1.13)	$	(3.88)	$	(1.78)	$	(3.61)

Diluted earnings (loss) per common share:
Loss from continuing operations	$	(1.15)	$	(3.88)	$	(1.87)	$	(3.61)
Income from discontinued operations	0.02		—		0.09		—
Net loss	$	(1.13)	$	(3.88)	$	(1.78)	$	(3.61)

We had a net loss for all periods presented above . Accordingly, our diluted earnings (loss) per share calculation was equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period.

The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands, except per share amounts)	2021		2020		2021		2020
Potentially dilutive shares excluded as anti-dilutive	3,920		4,579		4,146		3,579
Weighted-average price per share	$	57.15	$	58.03	$	56.79	$	60.55