Earnings (Loss) Per Share Attributable to Navistar International Corporation

The following table presents the information used in the calculation of our basic and diluted earnings (loss) per share all attributable to NIC in our Consolidated Statements of Operations:



	Three Months Ended April 30,					Six Months Ended April 30,
(in millions, except per share data)	2019			2018		2019			2018
Numerator:
Net income (loss) attributable to Navistar International Corporation common stockholders	$	(48	)	$	55	$	(37	)	$	(18	)

Denominator:
Weighted average shares outstanding:
Basic	99.2			98.8		99.2			98.7
Effect of dilutive securities	—			0.7		—			—
Diluted	99.2			99.5		99.2			98.7

Earnings (loss) per share attributable to Navistar International Corporation:
Basic	$	(0.48	)	$	0.56	$	(0.37	)	$	(0.18	)
Diluted	(0.48		)	0.55		(0.37		)	(0.18		)

The conversion rate on our 4.5% Senior Subordinated Convertible Notes due 2018 (the "2018 Convertible Notes") was 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 had an anti-dilutive effect when calculating diluted earnings per share when our average stock price was less than $58.40. The 2018 Convertible Notes were fully repaid upon maturity in October 2018, and none were converted into shares of our common stock.

The conversion rate on our 4.75% Senior Subordinated Convertible Notes due 2019 (the “2019 Convertible Notes”) was 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 had an anti-dilutive effect when calculating diluted earnings per share when our average stock price was less than $54.07. The 2019 Convertible Notes were fully repaid upon maturity in April 2019 and none were converted into shares of our common stock.

The computation of diluted earnings per share excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive. For both the three months and six months ended April 30, 2019, as well as the six months ended April 30, 2018, no dilutive securities were included in the computation of diluted earnings per share because they would have been anti-dilutive due to the net loss attributable to NIC.

For the three and six months ended April 30, 2018, certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. The aggregate shares not included were 13.3 million and 14.2 million, respectively, which was primarily comprised of 3.4 million shares related to the 2018 Convertible Notes and 7.6 million shares related to the 2019 Convertible Notes.