LOSS) EARNINGS PER SHARE

The Company computes basic (loss) earnings per share by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted (loss) earnings per share is computed by dividing net (loss) earnings, after adding back the after-tax amount of interest recognized in the period associated with the Company’s Floating Rate Convertible Senior Subordinated Notes, by diluted weighted average shares outstanding. For the three and nine month periods ended December 31, 2012 and 2011, market rates were below the level at which interest payments for these notes are required.

Potentially dilutive shares include the assumed exercise of stock options and the assumed vesting of restricted stock and stock unit awards (using the treasury stock method) as well as the assumed conversion of the convertible debt, if dilutive (using the if-converted method). Shares which are contingently issuable under the Company’s plan of reorganization have been included as outstanding common shares for purposes of calculating basic (loss) earnings per share.

Basic and diluted (loss) earnings per share for the three and nine month periods ended December 31, 2012 and 2011 are summarized as follows:



	For the Three Months Ended					For the Nine Months Ended
	December 31,			December 31,		December 31,			December 31,
	2012			2011		2012			2011
	(In thousands, except per share amounts)
Net (loss) income attributable to
Exide Technologies	$	(15,443	)	$	68,215	$	(135,816	)	$	59,435

Basic weighted average shares outstanding	77,344			77,738		77,234			77,628
Effect of dilutive securities:
Floating Rate Convertible
Senior Subordinated Notes	—			3,697		—			3,697
Employee stock options	—			—		—			380
Employee restricted stock
awards (non-vested)	—			175		—			493
	—			3,872		—			4,570
Diluted weighted average
shares outstanding	77,344			81,610		77,234			82,198

Basic (loss) earnings per share	$	(0.20	)	$	0.88	$	(1.76	)	$	0.77

Diluted (loss) earnings per share	$	(0.20	)	$	0.84	$	(1.76	)	$	0.72

Due to a net loss for the three and nine month periods ended December 31, 2012, certain potentially dilutive shares were excluded from the diluted loss per share calculation because their effect would be antidilutive:



			December 31, 2012
			(In thousands)
Shares associated with convertible debt (assumed conversion)			3,697
Employee stock options			2,872
Restricted stock awards (non-vested)			1,839
Total shares excluded			8,408

For the three and nine months ended December 31, 2011, approximately 3.0 million stock options were excluded from the diluted earnings per share calculation because their exercise prices were greater than the average market price of the related common stock for the periods, and their inclusion would be antidilutive. The remaining options, if any, were included in the treasury stock method calculation, and the resulting incremental shares were included in the calculation of diluted earnings per share.