Earnings Per Share

6 Months Ended

Mar. 31, 2016

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 three and six months ended March 31, 2016 and 2015. Accordingly, all common stock equivalents were excluded during these periods from the computation of diluted loss per share because inclusion would have resulted in anti-dilution. For the three and six months ended March 31, 2016, 2.0 million and 1.9 million shares related to nonvested stock-based compensation awards were excluded from our calculation of diluted income per share as a result of their anti-dilutive effect. For the three and six months ended March 31, 2015, 1.7 million shares related to nonvested stock-based compensation awards and 5.3 million shares issuable upon the conversion of our previously outstanding Tangible Equity Unit (TEU) prepaid stock purchase contracts (PSPs) were similarly excluded.