EARNINGS (LOSS) PER SHARE

12 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE

Basic and diluted EPS for the years ended September 30, 2016, 2015 and 2014 were determined using the following information (in thousands):



	2016	2015	2014
Weighted average shares outstanding - basic	41,074	44,608	49,367
Incremental shares from stock based compensation	2,326	2,011	—
Convertible debt due 2017	709	320	—
Weighted average shares outstanding - diluted	44,109	46,939	49,367
Anti-dilutive options excluded from diluted EPS computation	6	493	582
Anti-dilutive restricted stock excluded from diluted EPS computation	—	—	1,642

Griffon has the intent and ability to settle the principal amount of the 2017 Notes in cash, and therefore the potential issuance of shares related to the principal amount of the 2017 Notes does not affect diluted shares. Shares of the ESOP that have been allocated to employee accounts are treated as outstanding in determining earnings per share.