Earnings per Share

3 Months Ended

Mar. 31, 2016

EARNINGS PER SHARE

Basic earnings per share are based on the weighted-average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted-average number of shares of common stock outstanding plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. This method requires that the effect of potentially dilutive common stock equivalents (stock options, SSARs, performance shares, incentive shares and warrants) be excluded from the calculation of diluted earnings per share for the periods in which LP recognizes losses from continuing operations or at such time that the exercise prices of such awards are in excess of the weighted average market price of LP's common stock during these periods because the effect is anti-dilutive.



Dollar and share amounts in millions, except per share amounts	Three Months Ended March 31,
	2016		2015
Numerator:
Net income (loss)	$	10.3	$	(34.5	)
Denominator:
Denominator for basic earnings per share:
Weighted average common shares outstanding	142.9		142.0
Effect of dilutive securities:
Dilutive effect of stock warrants	0.3		—
Dilutive effect of employee stock plans	2.0		—
Dilutive potential common shares	2.3		—
Denominator for diluted earnings per share:
Adjusted weighted average shares	145.2		142.0
Basic earnings per share:
Net income (loss) per share	$	0.07	$	(0.24	)
Diluted earnings per share:
Net income (loss) per share	$	0.07	$	(0.24	)

For the three months ended March 31, 2016, stock options, warrants and SSARs relating to approximately 2.6 million shares of LP common stock were considered not in-the-money for purposes of LP's earnings per share calculation. For the three months ended March 31, 2015, stock options, warrants and SSARs relating to approximately 5.2 million shares of LP common stock were considered anti-dilutive for purposes of LP's earnings per share calculation due to LP's loss position from continuing operations.

At March 31, 2016, outstanding warrants were exercisable to purchase approximately 227,129 shares.