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Loss Per Share Attributable to Navistar International Corporation
 6 Months Ended
Apr. 30, 2013
Earnings Per Share [Abstract]  
Loss Per Share Attributable to Navistar International Corporation
Loss Per Share Attributable to Navistar International Corporation
The following table presents the information used in the calculation of our basic and diluted loss per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation:
 
Three Months Ended April 30,
 
Six Months Ended April 30,
(in millions, except per share data)
2013
 
2012
 
2013
 
2012
Numerator:
 
 
 
 
 
 
 
Amounts attributable to Navistar International Corporation common stockholders:
 
 
 
 
 
 
Loss from continuing operations, net of tax
$
(353
)
 
$
(138
)
 
$
(467
)
 
$
(282
)
Loss from discontinued operations, net of tax
(21
)
 
(34
)
 
(30
)
 
(43
)
Net loss
$
(374
)
 
$
(172
)
 
$
(497
)
 
$
(325
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
80.4

 
68.7

 
80.3

 
69.3

Effect of dilutive securities
—

 
—

 
—

 
—

Diluted
80.4

 
68.7

 
80.3

 
69.3

 
 
 
 
 
 
 
 
Loss per share amount attributable to Navistar International Corporation:
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Continuing operations
$
(4.39
)
 
$
(2.01
)
 
$
(5.82
)
 
$
(4.07
)
Discontinued operations
(0.26
)
 
(0.49
)
 
(0.37
)
 
(0.62
)
Net loss
$
(4.65
)
 
$
(2.50
)
 
$
(6.19
)
 
$
(4.69
)
Diluted:
 
 
 
 
 
 
 
Continuing operations
$
(4.39
)
 
$
(2.01
)
 
$
(5.82
)
 
$
(4.07
)
Discontinued operations
(0.26
)
 
(0.49
)
 
(0.37
)
 
(0.62
)
Net loss
$
(4.65
)
 
$
(2.50
)
 
$
(6.19
)
 
$
(4.69
)

The conversion rate on our 3% Senior Subordinated Convertible Notes, due in 2014 (the "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, 2013 and 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. Additionally, certain securities would have been excluded from the computation of earnings per share, as our average stock price was less than their respective exercise prices. For the three and six months ended April 30, 2013 the aggregate shares not included were 30.0 million and 29.0 million, respectively. In 2012, the aggregate shares not included were 28.0 million in both periods. In both the three and six months ended April 30, 2013 and 2012, the aggregate shares not included from the computation of earnings per share were primarily comprised of 11.3 million shares related to the warrants and 11.3 million shares related to the Convertible Notes.