Earnings (Loss) Per Share Attributable to Navistar International Corporation

The following table presents the information used in the calculation of our basic and diluted income (loss) per share for continuing operations, discontinued operations, and net income (loss), all attributable to Navistar International Corporation:



	Three Months Ended April 30,					Six Months Ended April 30,
(in millions, except per share data)	2016		2015			2016			2015
Numerator:
Amounts attributable to Navistar International Corporation common stockholders:
Income (loss) from continuing operations, net of tax	$	4	$	(64	)	$	(29	)	$	(106	)
Income (loss) from discontinued operations, net of tax	—		—			—			—
Net income (loss)	$	4	$	(64	)	$	(29	)	$	(106	)

Denominator:
Weighted average shares outstanding:
Basic	81.7		81.6			81.7			81.5
Effect of dilutive securities	0.3		—			—			—
Diluted	82.0		81.6			81.7			81.5

Income (loss) per share attributable to Navistar International Corporation:
Basic:
Continuing operations	$	0.05	$	(0.78	)	$	(0.35	)	$	(1.30	)
Discontinued operations	—		—			—			—
Net income (loss)	$	0.05	$	(0.78	)	$	(0.35	)	$	(1.30	)
Diluted:
Continuing operations	$	0.05	$	(0.78	)	$	(0.35	)	$	(1.30	)
Discontinued operations	—		—			—			—
Net income (loss)	$	0.05	$	(0.78	)	$	(0.35	)	$	(1.30	)

The conversion rate on our 4.50% senior subordinated convertible notes due 2018 ("2018 Convertible Notes") is 17.1233 shares of common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to an initial conversion price of approximately $58.40 per share of common stock. The 2018 Convertible Notes have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $58.40.

The conversion rate on our 4.75% senior subordinated convertible notes due April 2019 ("2019 Convertible Notes") is 18.4946 shares of common stock per $1,000 principal amount of 2019 Convertible Notes, equivalent to an initial conversion price of approximately $54.07 per share of common stock. The 2019 Convertible Notes have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $54.07.

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 months ended April 30, 2016, certain outstanding options and other common stock equivalents were excluded from the computation of diluted earnings per share, as our average stock price during the period was less than their respective exercise prices. The aggregate options and other common stock equivalents not included were 14.9 million.

For the six months ended April 30, 2016, no dilutive shares were included in the computation of diluted earnings per share because they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. The aggregate shares not included were 14.8 million.

For both the three and six months ended April 30, 2015, no dilutive shares were included in the computation of diluted earnings per share because they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. The aggregate shares not included were 16.0 million.

For both the three and six months ended April 30, 2016 and both the three and six months ended April 30, 2015, the aggregate shares not included in the computation of earnings per share were primarily comprised of 3.4 million shares related to the 2018 Convertible Notes and 7.6 million shares related to the 2019 Convertible Notes.