Loss Per Share

3 Months Ended

Aug. 31, 2011

Earnings Per Share [Text Block]

6. Loss Per Share

A portion of the Company’s Stock Units granted to employees participate in earnings through cumulative non-forfeitable dividends payable to the employees upon vesting of the Stock Units. For periods in which the Company has net income, basic earnings per Common and Class A shares outstanding (the “Issued Shares”) is calculated as the lesser of:

	•	Net earnings divided by the weighted average shares outstanding of the Issued Shares during the period (the “Treasury Stock Method”); or
	•	The sum of earnings distributed in the period to the Issued Shares and undistributed earnings available to the Issued Shares (excluding earnings attributable to the participating Stock Units) divided by the weighted average shares outstanding of the Issued Shares during the period (the “Two-Class Method”).
Diluted earnings per share for periods in which the Company has net income is calculated as the lesser of:
	•	The Treasury Stock Method incorporating the effect of dilutive shares; or
	•	The Two-Class Method incorporating the effect of dilutive shares.

In periods of net loss, dilutive earnings per share are not reported as the effect of the potentially dilutive shares becomes anti-dilutive.

In a period in which the Company reports a discontinued operation, Earnings (loss) from continuing operations is used as the “control number” in determining whether potentially dilutive common shares are dilutive or anti-dilutive. The Company calculates per share figures prior to rounding in millions.

The following table summarizes the reconciliation of the numerators and denominators for the Basic and Diluted loss per share com

putation for the periods indicated:

	Three months ended August 31,
	2011			2010
Loss from continuing operations attributable to Class A and Common Shares	$	(25.1	)	$	(33.9	)
Loss from discontinued operations attributable to Class A and Common Shares, net of tax		(2.0	)		(1.3	)
Net loss attributable to Class A and Common Shares		(27.1	)		(35.2	)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic loss per share (in millions)		31.0			36.1
Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)		*			*
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted loss per share (in millions)		*			*
Loss per share of Class A and Common Stock:
Basic:
Loss from continuing operations	$	(0.81	)	$	(0.94	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	(0.04	)
Net loss	$	(0.87	)	$	(0.98	)
Diluted:
Loss from continuing operations	$	(0.81	)	$	(0.94	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	(0.04	)
Net loss	$	(0.87	)	$	(0.98	)

* In the three months ended August 31, 2011 and 2010, the Company experienced a loss from continuing operations and therefore did not report any dilutive share impact.

Potentially dilutive options pursuant to compensation plans that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive were 4.5 million and 5.0 million for the three-month periods ended August 31, 2011 and 2010, respectively. Had the Company reported net income for the three-month periods ended August 31, 2011 and 2010, the dilutive effect for the periods ended August 31, 2011 and 2010 would have been 0.6 million and 0.4 million, respectively. Options outstanding pursuant to compensation plans were 6.0 million and 6.4 million as of August 31, 2011 and 2010, respectively.

As of August 31, 2011, $44.5 remained available for future purchases of common shares under the current repurchase authorization of the Board of Directors. See Note 12, “Treasury Stock,” for a more complete description of the Company’s share buy-back program.