EARNINGS PER SHARE (EPS)

6 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

NOTE 10 – EARNINGS PER SHARE (EPS)

Basic EPS (and diluted EPS in periods where a loss exists) was calculated by dividing income (loss) 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.

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

	Three Months Ended March 31,				Six Months Ended March 31,
	2013		2012		2013		2012
Weighted average shares outstanding - basic		54,345		56,037		54,749		56,031
Incremental shares from stock based compensation		—		1,343		—		1,197
Weighted average shares outstanding - diluted		54,345		57,380		54,749		57,228
Anti-dilutive options excluded from diluted EPS computation		856		989		856		989
Anti-dilutive restricted stock excluded from diluted EPS computation		2,421		—		2,259		—

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.