Loss Per Share

3 Months Ended

Sep. 30, 2011

Loss Per Share [Abstract]

Note 4 – Loss Per Share

Basic loss per common share attributable to ECD stockholders is computed by dividing the net loss attributable to ECD stockholders by the weighted average number of common shares outstanding for the period. Diluted loss per share attributable to ECD stockholders reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that then shared in the net loss attributable to ECD stockholders. The following table reconciles the numerator and denominator to calculate basic and diluted loss per share attributable to ECD stockholders:


		Net Income (Loss) Attributable to ECD Stockholders (Numerator)				Shares (Denominator)				Per Share Amounts
		(in thousands, except per share amounts)
Three Months Ended September 30, 2011
Continuing operations		$	(57,461	)						$	(1.15	)
Discontinued operations, net of tax			1,339								0.03

Basic and diluted loss per share		$	(56,122	)			49,832			$	(1.12	)


Three Months Ended September 30, 2010
Continuing operations		$	(15,359	)						$	(0.33	)
Discontinued operations, net of tax			1,824								0.04

Basic and diluted loss per share		$	(13,535	)			46,128			$	(0.29	)

The following securities would have had an anti-dilutive effect on earnings per share and are therefore excluded from the computations above.


		Three Months Ended September 30,
		2011				2010
		(in thousands)
Share-based payment arrangements			2,315				1,428

As part of the agreement for the Convertible Senior Notes (“Notes”) issued in June 2008, the Company also issued 3,444,975 shares as part of a “share-lending” arrangement with the underwriter. The purpose of the share-lending agreement is to facilitate transactions which allow the investors in the Notes to hedge their investments in the Notes.

The underwriter received all proceeds from any sale of shares pursuant to the share-lending agreement. The shares must be returned to the Company no later than the maturity date of the Notes. These shares are considered issued and outstanding and have all the rights of any holder of the Company’s common stock. However, because the shares must be returned to the Company, the shares are not considered outstanding for purposes of calculating earnings per share.

The Notes are only convertible prior to March 15, 2013 under specific circumstances involving the price of the Company’s common stock, the price of the Notes, and certain corporate transactions including, but not limited to, an offering of common stock at a price less than market, a distribution of cash or other assets to stockholders, a merger, consolidation or other share exchange, or a change in control. The holders of the Notes may convert the principal amount of their Notes into cash and, with respect to any amounts in excess of the principal amount, if applicable, shares of the Company’s common stock initially at a conversion rate of 10.8932 shares (equivalent to an initial conversion price of approximately $91.80 per share) per $1,000 principal amount of the Notes. The holders of the Notes are only entitled to amounts in excess of the principal amount if shares of the Company’s common stock exceed a market price of $91.80 for a period of 20 consecutive trading days during the applicable cash settlement averaging period. During the three months ended September 30, 2011 and 2010, the Company’s common stock price did not exceed the conversion price. Therefore, there are no contingently issuable shares to include in the diluted earnings per share calculation.