Earnings Per Share

9 Months Ended

Mar. 31, 2021

EARNINGS PER SHARE

The Company computes earnings per share of the Company’s Common Stock using the two-class method required due to the participating nature of the Series A Preferred Stock (as defined and discussed in Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss. Diluted net earnings per share is computed using the weighted average number of shares of Common Stock outstanding plus the weighted average number of shares of Common Stock that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net earnings per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans are reflected in diluted earnings per share by application of the treasury stock method. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2021 and 2020, respectively, are as follows:


	Three Months Ended March 31,				Nine Months Ended March 31,
(In millions except per share data)	2021		2020		2021		2020


Net earnings	$	231.8	$	20.9	$	402.6	$	66.5
Less: Net earnings attributable to preferred shareholders	(14.7)		(9.1)		(42.5)		(27.8)
Net earnings attributable to common shareholders	$	217.1	$	11.8	$	360.1	$	38.7

Weighted average shares outstanding - basic	170.5		151.3		167.2		147.7
Weighted average dilutive securities issuable - stock plans	2.0		1.8		2.3		1.8
Weighted average shares outstanding - diluted	172.5		153.1		169.5		149.5

Earnings per share:


Basic	$	1.27	$	0.08	$	2.15	$	0.26




Diluted	$	1.26	$	0.08	$	2.12	$	0.26

The Company's Series A Preferred Stock is deemed a participating security, meaning that it has the right to participate in undistributed earnings with the Company's Common Stock. On November 23, 2020 (the “Partial Conversion Date”), holders of Series A Preferred Stock converted 265,233 shares and $1.9 million of unpaid accrued dividends into shares of Common Stock (the “Partial Conversion”). The holders received 20.33 shares of Common Stock for each converted preferred share, resulting in the issuance of 5,392,280 shares of Common Stock. See Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss for further details.

The diluted earnings per share calculations did not include the shares of Common Stock associated with the Series A Preferred Stock or the following outstanding equity grants due to their antidilutive effect:


	Three Months Ended March 31,		Nine Months Ended March 31,
(share counts in millions)	2021	2020	2021	2020
Stock options	—	0.3	0.2	0.4
Restricted stock units	—	0.1	0.1	0.1
Performance stock units	—	0.1	—	0.1
Series A Preferred Stock	7.7	13.1	10.6	13.1