Loss per share attributable to Navistar International Corporation

6 Months Ended

Apr. 30, 2012

Earnings Per Share [Abstract]

Loss per share attributable to Navistar International Corporation

Earnings (Loss) Per Share Attributable to Navistar International Corporation

The following table shows the information used in the calculation of our basic and diluted earnings (loss) per share attributable to Navistar International Corporation:

	Three Months Ended April 30,					Six Months Ended April 30,
	2012			2011		2012			2011
(in millions, except per share data)
Numerator:
Earnings (loss) attributable to Navistar International Corporation available to common stockholders	$	(172	)	$	74	$	(325	)	$	68
Denominator:
Weighted average shares outstanding:
Basic	68.7			73.0		69.3			72.8
Effect of dilutive securities	—			5.6		—			4.5
Diluted	68.7			78.6		69.3			77.3
Earnings (loss) per share attributable to Navistar International Corporation:
Basic	$	(2.50	)	$	1.01	$	(4.69	)	$	0.93
Diluted	(2.50		)	0.93		(4.69		)	0.87

The conversion rate on our Convertible Notes is 19.891 shares of common stock per $1,000 principal amount of Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The Convertible Notes and warrants are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively.

We also purchased call options in connection with the sale of the Convertible Notes, covering 11.3 million shares at an exercise price of $50.27 per share, which are intended to minimize share dilution associated with the Convertible Notes; however under accounting guidance, these call options cannot be utilized to offset the dilution of the Convertible Notes for determining diluted earnings per share as they are anti-dilutive.

The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive.

For the three and six months ended April 30, 2012, no dilutive securities were included in the computation of diluted loss per share since they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. The aggregate shares not included were 28.0 million in both the three and six months ended April 30, 2012.

For the three and six months ended April 30, 2011, aggregate shares not included in the computation of diluted earnings per share since they would have been anti-dilutive were 0.6 million and 0.5 million, respectively.