Estee Lauder 2010 Annual Report Download - page 146

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THE EST{E LAUDER COMPANIES INC. 145
Stock. The Company recorded $2.3 million as compensa-
tion expense, $0.3 million as compensation income and
$0.5 million as compensation expense to reflect additional
deferrals and the change in the market value for fiscal
2010, 2009 and 2008, respectively.
Cash Units
Certain non-employee directors defer cash compensation
in the form of cash payout share units, which are not sub-
ject to the Plans. These share units are classified as liabili-
ties and, as such, their fair value is adjusted to reflect the
current market value of the Company’s Class A Common
NOTE 17
—
NET EARNINGS ATTRIBUTABLE TO
THE EST{E LAUDER COMPANIES INC. PER COMMON SHARE
Net earnings attributable to The Estée Lauder Companies Inc. per common share (“basic EPS”) is computed by dividing
net earnings attributable to The Estée Lauder Companies Inc. by the weighted-average number of common shares out-
standing and contingently issuable shares (which satisfy certain conditions). Net earnings attributable to The Estée Lauder
Companies Inc. per common share assuming dilution (“diluted EPS”) is computed by reflecting potential dilution from
stock-based awards.
A reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:
YEAR ENDED JUNE 30 2010 2009 2008
(In millions, except per share data)
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc. $478.3 $218.4 $473.8
Denominator:
Weighted average common shares outstanding — Basic 197.7 196.3 193.9
Effect of dilutive stock options 2.2 0.8 2.6
Effect of restricted stock units and performance share units 0.8 0.6 0.6
Weighted average common shares outstanding — Diluted 200.7 197.7 197.1
Net earnings attributable to The Estée Lauder Companies Inc.
per common share:
Basic $2.42 $1.11 $2.44
Diluted 2.38 1.10 2.40
2010
$478.3
197.7
2.2
0.8
200.7
$2.42
2.38
As of June 30, 2010, outstanding stock options that were not included in the computation of diluted EPS because their
inclusion would be anti-dilutive were de minimis. As of June 30, 2009 and 2008, outstanding options to purchase 18.7
million and 7.1 million shares, respectively, of Class A Common Stock were not included in the computation of diluted EPS
because their inclusion would be anti-dilutive. As of June 30, 2010, 2009 and 2008, 0.3 million, 0.2 million and 0.2 million,
respectively, of performance share units have been excluded from the calculation of diluted EPS because the number of
shares ultimately issued is contingent on the achievement of certain performance targets of the Company, as discussed
in Note 16 — Stock Programs.