NOTE 8 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,
	2017		2016		2015
	(in thousands)

Numerator:
Income (loss) from continuing operations	$	(127,863)	$	(52,990)	$	420,474
Loss from discontinued operations		(349)		(3,838)		(47)
Net income (loss)		(128,212)		(56,828)		420,427
Adjustment for basic earnings per share
Earnings allocated to unvested shareholders		(1,811)		(1,858)		(2,163)
Numerator for basic earnings per share:
From continuing operations		(129,674)		(54,848)		418,311
From discontinued operations		(349)		(3,838)		(47)
		(130,023)		(58,686)		418,264
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders		—		—		6
Numerator for diluted earnings per share:
From continuing operations		(129,674)		(54,848)		418,317
From discontinued operations		(349)		(3,838)		(47)
	$	(130,023)	$	(58,686)	$	418,270
Denominator:
Denominator for basic earnings per share - weighted-average shares		108,500		107,996		107,754
Effect of dilutive shares from stock options and restricted stock				—		816
Denominator for diluted earnings per share - adjusted weighted-average shares		108,500		107,996		108,570
Basic earnings per common share:
Income (loss) from continuing operations	$	(1.20)	$	(0.50)	$	3.88
Loss from discontinued operations		—		(0.04)		—
Net income (loss)	$	(1.20)	$	(0.54)	$	3.88
Diluted earnings per common share:
Income (loss) from continuing operations	$	(1.20)	$	(0.50)	$	3.85
Loss from discontinued operations		—		(0.04)		—
Net income (loss)	$	(1.20)	$	(0.54)	$	3.85

We had a net loss for fiscal 2017 and 2016. Accordingly, our diluted earnings per share calculation for those years were 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:


	2017		2016		2015
	(in thousands, except
	per share amounts)
Shares excluded from calculation of diluted earnings per share		1,008		1,788		667
Weighted-average price per share	$	74.38	$	63.73	$	72.85