2.	Basic and Diluted (Loss) Earnings Per Share

Accounting Standards Codification 260, Earnings Per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends prior to vesting as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to certain employees under our restricted stock agreements, grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities. Therefore, we are required to apply the two-class method in calculating earnings per share. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The dilutive effect of participating securities is calculated using the more dilutive of the treasury method or the two-class method.

Basic (loss) earnings per common share was computed using the two-class method by dividing basic net (loss) earnings attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted (loss) earnings per common share was computed using the two-class method by dividing diluted net (loss) earnings attributable to common stockholders by the weighted-average number of common shares outstanding plus dilutive common equivalent shares. Dilutive common equivalent shares include all in-the-money outstanding options or other contracts to issue common stock as if they were exercised or converted.

During the nine months ended January 31, 2016 and 2015 and the three months ended January 31, 2015, all shares of outstanding options were included in the computation of diluted earnings per share. During the nine months ended January 31, 2016, restricted stock awards of 0.5 million were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. During the three and nine months ended January 31, 2015, restricted stock awards of 0.5 million were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. Due to a net loss generated for the three months ended January 31, 2016, no potentially dilutive shares are included in the loss per share calculation, including 1.5 million in restricted stock awards outstanding, as including such shares in the calculation would be anti-dilutive.

The following table summarizes basic and diluted (loss) earnings per common share attributable to common stockholders:


	Three Months Ended January 31,					Nine Months Ended January 31,
	2016			2015		2016		2015
	(in thousands, except per share data)

Net (loss) income	$	(15,995	)	$	22,939	$	25,058	$	62,875
Less: distributed and undistributed earnings to nonvested restricted stockholders		54			223		235		632

Basic net (loss) earnings attributable to common stockholders		(16,049	)		22,716		24,823		62,243
Add: undistributed earnings to nonvested restricted stockholders		—			223		83		632
Less: reallocation of undistributed earnings to nonvested restricted stockholders		—			220		82		623

Diluted net (loss) earnings attributable to common stockholders	$	(16,049	)	$	22,719	$	24,824	$	62,252


Weighted-average common shares outstanding:
Basic weighted-average number of common shares outstanding		54,003			49,135		51,159		48,973
Effect of dilutive securities:
Restricted stock		—			491		459		578
Stock options		—			97		53		111
ESPP		—			1		12		1

Diluted weighted-average number of common shares outstanding		54,003			49,724		51,683		49,663


Net (loss) earnings per common share:
Basic (loss) earnings per share	$	(0.30	)	$	0.46	$	0.49	$	1.27

Diluted (loss) earnings per share	$	(0.30	)	$	0.46	$	0.48	$	1.25