Year Ended October 31,

(In thousands, except per share data)

2014

2013

2012

Numerator:

Net earnings (loss) attributable to Hovnanian

$307,144

$31,295

$(66,197

)

Less: undistributed earnings allocated to nonvested shares

(7,107

)

(58

)

-

Numerator for basic earnings per share

$300,037

$31,237

$(66,197

)

Plus: undistributed earnings allocated to nonvested shares

7,107

58

-

Less: undistributed earnings reallocated to nonvested shares

(7,127

)

(59

)

-

Plus: interest on senior exchangeable notes

3,487

3,720

-

Numerator for diluted earnings per share

$303,504

$34,956

$(66,197

)

Denominator:

Denominator for basic earnings per share

146,271

145,087

126,350

Effect of dilutive securities:

Share-based payments

1,013

1,396

-

Senior exchangeable notes

15,157

15,846

-

Denominator for diluted earnings per share – weighted-average shares outstanding

162,441

162,329

126,350

Basic earnings (loss) per share

$2.05

$0.22

$(0.52

)

Diluted earnings (loss) per share

$1.87

$0.22

$(0.52

)