EARNINGS PER SHARE (EPS)

9 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

NOTE 10 – EARNINGS PER SHARE (EPS)

Basic EPS was calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS was calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding plus additional common shares that could be issued in connection with stock based compensation. The 2023 Notes and the 2017 Notes were anti-dilutive due to the conversion price being greater than the weighted-average stock price during the periods presented. Due to the net loss during the nine months ended June 30, 2011, the incremental shares from stock based compensation are anti-dilutive.

The following table is a reconciliation of the share amounts (in thousands) used in computing earnings per share:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Weighted average shares outstanding - basic		56,034		59,606		56,032		59,387
Incremental shares from stock based compensation		1,461		919		1,279		—
Weighted average shares outstanding - diluted		57,495		60,525		57,311		59,387
Anti-dilutive options excluded from diluted EPS computation		963		1,200		1,202		1,200
Anti-dilutive restricted stock excluded from diluted EPS computation		—		850		—		850

Griffon has the intent and ability to settle the principal amount of the 2017 Notes in cash, as such, the potential issuance of shares related to the principal amount of the 2017 Notes does not affect diluted shares.