Earnings Per Share

12 Months Ended

Sep. 30, 2015

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income per share adjusts the basic income per share for the effects of any potentially dilutive instruments, only in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Basic and diluted income (loss) per share is calculated using unrounded numbers.

The Company reported a net loss for the fiscal year ended September 30, 2013. Accordingly, all common stock equivalents, including 0.6 million shares issuable related to our stock-based compensation plans and 7.9 million shares issuable upon the conversion of our PSPs, were excluded from the computation of diluted loss per share because inclusion would have resulted in anti-dilution. For the years ended September 30, 2015 and 2014, 1.1 million and 0.6 million common stock equivalents, respectively, were excluded from our calculation of diluted income per share as a result of their anti-dilutive effect.

The weighted-average number of common shares outstanding used to calculate basic income (loss) per share is reconciled to shares used to calculate diluted income (loss) per share as follows for the periods presented:



	Fiscal Year Ended September 30,
(in thousands)	2015	2014	2013
Basic shares	27,628	25,795	24,651
Shares issued upon conversion of TEUs ^(a)	4,069	5,784	—
Shares issuable upon vesting/exercise of stock awards/options	75	216	—
Diluted shares	31,772	31,795	24,651

^(a) In July 2015, the remaining PSPs related to the TEUs were settled in Beazer Homes' common stock at a rate of 1.40746 shares per TEU outstanding because our average share price during the pricing period as per the TEU agreement was greater than $17.75. This conversion required us to issue approximately 5.2 million shares of common stock to the instrument holders. In the current fiscal year, these instruments were dilutive from October 1, 2014 through July 15, 2015; once the shares were converted, they were included in the number of the weighted-average basic shares outstanding.