NOTE 7 EARNINGS PER SHARE

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividend 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 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 and nonvested restricted stock.

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

	September 30,
	2016			2015 (as adjusted)			2014 (as adjusted)
	(in thousands)
Numerator:
Income (loss) from continuing operations	$	(52,990	)	$	420,474		$	706,610
Loss from discontinued operations		(3,838	)		(47	)		(47	)

Net income (loss)		(56,828	)		420,427			706,563
Adjustment for basic earnings per share
Earnings allocated to unvested shareholders		(1,858	)		(2,163	)		(4,132	)

Numerator for basic earnings per share:
From continuing operations		(54,848	)		418,311			702,478
From discontinued operations		(3,838	)		(47	)		(47	)

		(58,686	)		418,264			702,431
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders		—			6			30
Numerator for diluted earnings per share:
From continuing operations		(54,848	)		418,317			702,508
From discontinued operations		(3,838	)		(47	)		(47	)

	$	(58,686	)	$	418,270		$	702,461


Denominator:
Denominator for basic earnings per share—weighted-average shares		107,996			107,754			107,800
Effect of dilutive shares from stock options and restricted stock		—			816			1,341

Denominator for diluted earnings per share—adjusted weighted-average shares		107,996			108,570			109,141


Basic earnings per common share:
Income (loss) from continuing operations	$	(0.50	)	$	3.88		$	6.52
Loss from discontinued operations		(0.04	)		—			—

Net income (loss)	$	(0.54	)	$	3.88		$	6.52


Diluted earnings per common share:
Income (loss) from continuing operations	$	(0.50	)	$	3.85		$	6.44
Loss from discontinued operations		(0.04	)		—			—

Net income (loss)	$	(0.54	)	$	3.85		$	6.44

We had a net loss for fiscal 2016. Accordingly, our diluted earnings per share calculation for fiscal 2016 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 shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

	2016		2015		2014
	(in thousands, except per share amounts)
Shares excluded from calculation of diluted earnings per share		1,788		667		215
Weighted-average price per share	$	63.73	$	72.85	$	79.67