Earnings Per Share

12 Months Ended

Sep. 30, 2015

The Company follows the provisions of ASC Topic 260, Earnings Per Share, which requires companies with complex capital structures, such as having two (or more) classes of securities that participate in declared dividends to calculate EPS utilizing the two-class method. As the holders of the Preferred Stock are entitled to receive dividends with common stock on an as-converted basis, the Preferred Stock has the right to participate in undistributed earnings and must therefore be considered under the two-class method. The following table sets forth the computation of basic and diluted EPS (share amounts in thousands):



	Fiscal
	2015			2014			2013
Net loss attributable to common and participating preferred stockholders	$	(556.8	)	$	(83.9	)	$	(94.2	)
Participating shares at end of period:
Common shares outstanding	197,106			196,878			138,876
Preferred shares (as-converted basis)	—			—			61,987
Total	197,106			196,878			200,863
Percentage of loss allocated to:
Common shares	100.0		%	100.0		%	100.0		%
Preferred shares (a)	—		%	—		%	—		%

Net loss attributable to common shares - basic and diluted	$	(556.8	)	$	(83.9	)	$	(94.2	)

Weighted-average common shares outstanding - basic and diluted	198,142			162,941			139,856

Net loss per common share attributable to controlling interest:
Basic	$	(2.81	)	$	(0.51	)	$	(0.67	)
Diluted	$	(2.81	)	$	(0.51	)	$	(0.67	)

(a) Losses are not allocated to the convertible participating preferred shares since they have no contractual obligation to share in such losses.

The number of shares of common stock outstanding used in calculating the weighted average thereof reflects the actual number of HRG common stock outstanding, excluding unvested restricted stock.

For Fiscal 2015, there were 2.7 million and 1.3 million weighted-average shares of the unvested restricted stock and stock units and stock options, respectively that were excluded from the calculation of “diluted net loss per common share attributable to controlling interest” because their as-converted effect would have been anti-dilutive for Fiscal 2015. Also excluded from the calculation were 1.8 million warrants because the exercise price of $13.125 per share was above the average stock price for Fiscal 2015.

For Fiscal 2014, there were 38.0 million weighted-average shares issuable upon the conversion of the Preferred Stock, and 2.6 million and 1.3 million weighted-average shares, respectively, of the unvested restricted stock and stock units and stock options that were excluded from the calculation of “diluted net loss per common share attributable to controlling interest” because the as-converted effect of the Preferred Stock, unvested restricted stock and stock units, and stock options would have been anti-dilutive for Fiscal 2014. Also excluded from the calculation were 3.0 million warrants issued in Fiscal 2014 because the exercise price of $13.125 per share was above the average stock price for Fiscal 2014.

For Fiscal 2013, there were 62.4 million weighted-average shares issuable upon the conversion of the Preferred Stock, and 2.5 million and 0.6 million weighted-average shares, respectively, of the unvested restricted stock and stock units and stock options that were excluded from the calculation of “diluted net loss per common share attributable to controlling interest” because their as-converted effect would have been anti-dilutive for Fiscal 2013.