Earnings (Loss) Per Common Share

6 Months Ended

Jun. 30, 2013

Earnings (Loss) Per Common Share [Abstract]

Earnings (Loss) Per Common Share

Note 23. Earnings (Loss) Per Common Share

Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows (in thousands):

		For the Three Month						For the Six Month
		Period Ended June 30,						Period Ended June 30,
		2013			2012			2013			2012
Numerator for earnings (loss) per share:
Net income (loss) attributable to Leucadia
National Corporation common shareholders	$	52,612		$	(197,251	)	$	357,715		$	293,626
Less: Allocation of earnings to participating securities (1)		(1,597	)		–			(4,200	)		–
Net income (loss) attributable to Leucadia
National Corporation common shareholders for
basic earnings (loss) per share		51,015			(197,251	)		353,515			293,626
Less: Adjustment to allocation of earnings to
participating securities related to diluted shares (1)		(29	)		–			(2	)		–
Mandatorily redeemable convertible preferred share
dividends		–			–			1,354			–
Interest on 3¾% Convertible Notes		–			–			1,316			1,312
Net income (loss) attributable to Leucadia
National Corporation common shareholders for
diluted earnings (loss) per share	$	50,986		$	(197,251	)	$	356,183		$	294,938
Denominator for earnings (loss) per share:
Denominator for basic earnings (loss) per share –
weighted average shares		367,752			244,583			315,375			244,583
Stock options		85			–			44			–
Warrants		–			–			–			–
Mandatorily redeemable convertible preferred shares		–			–			2,775			–
3.875% Convertible Senior Debentures		–			–			–			–
3¾% Convertible Notes		–			–			4,503			4,327
Denominator for diluted earnings (loss) per share		367,837			244,583			322,697			248,910

(1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 11,375,200 and 7,763,100 for the three and six month periods ended June 30, 2013, respectively. Dividends declared on participating securities during the three and six month periods ended June 30, 2013 were $0.7 million and $1.5 million, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Options to purchase 825,400 and 2,257,500 weighted average common shares were outstanding during the three month periods ended June 30, 2013 and 2012, respectively, and 1,748,600 and 2,243,000 weighted average common shares were outstanding during the six month periods ended June 30, 2013 and 2012, respectively, but were not included in the computation of diluted per share amounts as the effect was antidilutive.

The denominator for diluted earnings (loss) per share does not include weighted average common shares of 4,000,000 for the three and six month periods ended June 30, 2013 and 2012, related to outstanding warrants to purchase common shares at $33.33 per share, as the effect was antidilutive.

For the three and six month periods ended June 30, 2013, shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price.

For the three month periods ended June 30, 2013 and 2012, 4,557,339 and 4,327,317 shares, respectively, related to the 3¾% Convertible Notes were not included in the computation of diluted per share amounts as the effect was antidilutive. For the three month period ended June 30, 2013, 4,162,200 shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive.

Outstanding stock options and stock appreciation rights of a subsidiary are not included above since the subsidiary operates at a net loss and the effect is antidilutive.