Estee Lauder 2014 Annual Report Download - page 106

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104 THE EST{E LAUDER COMPANIES INC.
NOTE 16
—
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
outstanding 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 2014 2013 2012
(In millions, except per share data)
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc. $1,204.1 $1,019.8 $856.9
Denominator:
Weighted-average common shares outstanding — Basic 386.2 387.6 388.7
Effect of dilutive stock options 5.0 5.5 6.3
Effect of PSUs 0.1 — —
Effect of RSUs 1.4 1.4 1.8
Effect of performance share units based on TSR 0.1 0.1 —
Effect of MSU 0.3 0.3 0.2
Weighted-average common shares outstanding — Diluted 393.1 394.9 397.0
Net earnings attributable to The Estée Lauder Companies Inc.
per common share:
Basic $ 3.12 $ 2.63 $ 2.20
Diluted 3.06 2.58 2.16
20142014
$1,204.1$1,204.1
386.2386.2
5.05.0
0.10.1
1.41.4
0.10.1
0.30.3
393.1393.1
$ 3.12$ 3.12
3.063.06
As of June 30, 2014 and 2013, 0.1 million outstanding stock options were not included in the computation of diluted EPS
because their inclusion would be anti-dilutive. As of June 30, 2012, 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, 2014, 2013
and 2012, 0.5 million, 0.5 million and 0.6 million, respectively, of PSUs 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 15 — Stock Programs.