EARNINGS PER SHARE

After the close of all trading on June 26, 2015, the Company’s approved 1-for-10 reverse stock split of its common stock became effective. As a result, every 10 shares of Alliance One common stock outstanding were combined into one share of Alliance One common stock, reducing the number of outstanding shares of the Company’s common stock at June 26, 2015 from approximately 88.6 million shares to approximately 8.86 million shares. This change did not affect any shareholder’s rights. No fractional shares were issued in connection with the reverse stock split. Instead, the Company issued one full share of the post-reverse stock split common stock to any shareholder who would have been entitled to receive a fractional share as a result of the reverse stock split. Each common shareholder holds the same percentage of the outstanding common stock immediately following the reverse split as that shareholder did immediately prior to the reverse split, except for minor adjustments due to the additional net share fraction issued as a result of the treatment of fractional shares. For the three months ended June 30, 2014, the weighted average number of common shares has been restated to a post-reverse stock split-adjusted basis.

The weighted average number of common shares outstanding is reported as the weighted average of the total shares of common stock outstanding net of shares of common stock held by a wholly owned subsidiary. Shares of common stock owned by the subsidiary were 785 at June 30, 2015 and 2014. This subsidiary waives its right to receive dividends and it does not have the right to vote.

Certain potentially dilutive options were not included in the computation of earnings per diluted share because their exercise prices were greater than the average market price of the shares of common stock during the period and their effect would be antidilutive. These shares totaled 656 at a weighted average exercise price of $60.39 per share at June 30, 2015 and 686 at a weighted average exercise price of $60.42 per share at June 30, 2014.

In connection with the offering of the Company’s 5.5% Convertible Senior Subordinated Notes due 2014, issued on July 2, 2009 (the “Convertible Notes”), the Company entered into privately negotiated convertible note hedge transactions (the “convertible note hedge transactions”) equal to the number of shares that underlie the Company’s Convertible Notes. These convertible note hedge transactions were designed to reduce the potential dilution of the Company’s common stock upon conversion of the Convertible Notes in the event that the value per share of common stock exceeded the initial conversion price of $50.28 per share on a post-reverse stock split basis. These shares were not included in the computation of earnings per diluted share because their inclusion would be antidilutive. The Convertible Notes matured during the three months ended September 30, 2014.

The following table summarizes the computation of earnings per share for the three months ended June 30, 2015 and 2014, respectively.

8. EARNINGS PER SHARE (continued)



	Three Months Ended June 30,
(in thousands, except per share data)	2015				2014
BASIC LOSS
Net loss attributable to Alliance One International, Inc.	$	(25,950	)		$	(23,685	)

SHARES
Weighted average number of shares outstanding	8,862				8,799

BASIC LOSS PER SHARE	$	(2.93	)		$	(2.69	)

DILUTED LOSS
Net loss attributable to Alliance One International, Inc.	$	(25,950	)		$	(23,685	)
Plus interest expense on 5 1/2% convertible notes, net of tax	—				—			*
Net loss attributable to Alliance One International, Inc. as adjusted	$	(25,950	)		$	(23,685	)

SHARES
Weighted average number of common shares outstanding	8,862				8,799
Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price	—			*	—			*
Assuming conversion of 5 1/2% convertible notes at the time of issuance	—				—			*
Shares applicable to stock warrants	—			**	—			**
Adjusted weighted average number of common shares outstanding	8,862				8,799
DILUTED LOSS PER SHARE	$	(2.93	)		$	(2.69	)

* Assumed conversion of convertible notes at the beginning of the period has an antidilutive effect on earnings per share. The convertible notes matured during the three months ended September 30, 2014. All outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share.
** For the three months ended June 30, 2015 and 2014, the warrants were not assumed exercised because the exercise price was more than the average price for the periods presented. The warrants began expiring October 15, 2014 and were fully expired on April 8, 2015.