Earnings Per Share

The following table sets forth the computation of basic and diluted EPS (share amounts in thousands):



	Three months ended June 30,						Nine months ended June 30,
	2014			2013			2014			2013
Net income (loss) attributable to common and participating preferred stockholders	$	49.0		$	91.6		$	(77.6	)	$	108.1

Participating shares at end of period:
Common shares outstanding	201,043			140,576			201,043			140,576
Preferred shares (as-converted basis)	—			61,987			—			61,987
Total	201,043			202,563			201,043			202,563

Percentage of income (loss) allocated to:
Common shares	100.0		%	69.4		%	100.0		%	69.4		%
Preferred shares (a)	—		%	30.6		%	—		%	30.6		%

Net income (loss) attributable to common shares - basic	$	49.0		$	63.6		$	(77.6	)	$	75.0

Dilutive adjustments to income (loss) attributable to common shares from assumed conversion of preferred shares, net of tax:
Income allocated to preferred shares in basic calculation	—			28.0			—			33.1
Reversal of preferred stock dividends and accretion	—			12.0			—			36.3
Reversal of income related to fair value of preferred stock conversion feature	—			(52.6		)	—			(81.9		)
Net adjustment	—			(12.6		)	—			(12.5		)

Net income (loss) attributable to common shares - diluted	$	49.0		$	51.0		$	(77.6	)	$	62.5

Weighted-average common shares outstanding - basic	172,967			140,292			150,675			139,832
Dilutive effect of preferred stock	—			62,413			—			62,555
Dilutive effect of unvested restricted stock and restricted stock units	3,798			1,853			—			2,231
Dilutive effect of stock options	1,281			662			—			612
Weighted-average shares outstanding - diluted	178,046			205,220			150,675			205,230

Net income (loss) per common share attributable to controlling interest:
Basic	$	0.28		$	0.45		$	(0.52	)	$	0.54
Diluted	$	0.28		$	0.25		$	(0.52	)	$	0.30


(a)	Losses are not allocated to the convertible participating preferred shares for the period that these shares were outstanding, 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 HGI common stock outstanding, excluding unvested restricted stock.

For the three months ended June 30, 2014, there were 28,911 thousand weighted-average shares issuable upon the conversion of the Preferred Stock 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 would have been anti-dilutive for the three months ended June 30, 2014.

For the nine months ended June 30, 2014, there were 50,979 thousand weighted-average shares issuable upon the conversion of the Preferred Stock, and 2,380 thousand and 1,297 thousand 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 and unvested restricted stock and stock units and stock options would have been anti-dilutive for the nine months ended June 30, 2014.

Also excluded from the calculation were 3 million warrants because the exercise price of $13.25 per share was above the average stock price for the three and nine months ended June 30, 2014.