NOTE 20 - EARNINGS PER SHARE - SBH

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive shares for the three and six month periods ended March 31, 2019 and 2018 are as follows:


	Three Month Periods Ended				Six Month Periods Ended
(in millions, except per share amounts)	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Numerator
Net (loss) income from continuing operations attributable to controlling interest	$	(55.0)	$	(32.6)	$	(84.2)	$	7.5
Income from discontinued operations attributable to controlling interest		783.6		3.7		700.4		471.0
Net income (loss) attributable to controlling interest		728.6		(28.9)	$	616.2	$	478.5
Denominator
Weighted average shares outstanding - basic		51.8		32.5		52.6		32.4
Dilutive shares		—		—		—		0.3
Weighted average shares outstanding - diluted		51.8		32.5		52.6		32.7
Earnings per share
Basic earnings per share from continuing operations	$	(1.06)	$	(1.00)	$	(1.60)	$	0.23
Basic earnings per share from discontinued operations		15.13		0.11		13.32		14.52
Basic earnings per share	$	14.07	$	(0.89)	$	11.72	$	14.75
Diluted earnings per share from continuing operations	$	(1.06)	$	(1.00)	$	(1.60)	$	0.23
Diluted earnings per share from discontinued operations		15.13		0.11		13.32		14.42
Diluted earnings per share	$	14.07	$	(0.89)	$	11.72	$	14.65
Weighted average number of anti-dilutive shares excluded from denominator		0.1		—		0.1		—

The weighted average shares and earnings per share data on the Condensed Consolidated Statements of Income were retrospectively adjusted for all periods presented to reflect the effect of the reverse stock split on July 13, 2018, associated with the closing of the Spectrum Merger. See Note 4 – Acquisitions for further discussion on Spectrum Merger. Using (i) the 20-trading-day volume-weighted average price per share of Spectrum common stock ending on July 12, 2018, (ii) the number of shares of Spectrum common stock outstanding, the number of shares of Spectrum common stock held by HRG and its subsidiaries and the number of shares of Spectrum common stock outstanding as of July 12, 2018, (iii) $328.2 million of HRG net indebtedness and transaction expenses at closing, and (iv) a $200.0 million upward adjustment contemplated by the Merger Agreement, each HRG stockholder received a reverse stock split of approximately 0.1613 of each share of HRG stock. The following is a recalculation of the weighted average shares adjusted for the impact of the reverse stock split for the three and six month periods ended March 31, 2018.


	Three Month Periods Ended	Six Month Periods Ended
(in millions, except per share amounts)	March 31, 2018	March 31, 2018
Basic
HRG weighted average shares	201.6	201.1
HRG share conversion at 1 to 0.1613	32.5	32.4
Diluted
HRG weighted average shares	201.6	201.1
HRG share conversion at 1 to 0.1613	32.5	32.4

As part of the Spectrum Merger each share of Spectrum common stock and outstanding was converted into the right to receive one share of newly issued HRG common stock and exchange for HRG common stock. Due to the share exchange with Spectrum common stock shareholders, the total outstanding shares of the Company effectively increased 20.6 million shares in addition to the Company’s outstanding shares post-reverse stock split previously discussed.