NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE

3 Months Ended

Sep. 30, 2015

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE

NOTE 9 — NET EARNINGS ATTRIBUTABLE TO THE ESTÉE 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 numerator and denominator of the basic and diluted EPS computations is as follows:

	Three Months Ended September 30
(In millions, except per share data)	2015		2014
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc.	$	309.3	$	228.1
Denominator:
Weighted-average common shares outstanding — Basic	372.5		381.8
Effect of dilutive stock options	4.4		4.8
Effect of RSUs	2.0		1.6
Effect of PSUs based on TSR	0.1		—
Weighted-average common shares outstanding — Diluted	379.0		388.2
Net earnings attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	.83	$	.60
Diluted	.82		.59

As of September 30, 2015 and 2014, outstanding options to purchase 2.5 million and 2.1 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 September 30, 2015 and 2014, 0.8 million 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 9 — Stock-Based Compensation.