Earnings Per Share

12 Months Ended

Jun. 30, 2016

Note 7—Earnings Per Share

We apply the two-class method when computing earnings per share, which requires that net income per share for each class of shares entitled to dividends be calculated assuming all of our net income is distributed as dividends to these shareholders based on their contractual rights.

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

	Year Ended June 30,
	2016				2015				2014
	Basic		Diluted		Basic		Diluted		Basic			Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	362,451	$	362,451	$	342,989	$	342,989	$	234,579		$	234,579
Net income (loss) attributable to non-controlling interest		717		717		309		309		(113	)		(113	)
Net income attributable to Harman International Industries, Incorporated	$	361,734	$	361,734	$	342,680	$	342,680	$	234,692		$	234,692
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		71,866		71,866		70,147		70,147		69,073			69,073
Employee stock options		-		666		-		723		-			816
Total weighted average shares outstanding		71,866		72,532		70,147		70,870		69,073			69,889
Earnings per Share:
Earnings per share	$	5.03	$	4.99	$	4.89	$	4.84	$	3.40		$	3.36

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities, as defined under GAAP, and are included in the computation of earnings per share pursuant to the two-class method.

Certain options were outstanding and not included in the computation of diluted net earnings per share because the assumed exercise of these options would have been antidilutive. Options to purchase 194,561, 92,466 and 314,635 shares of our common stock for the fiscal year ended June 30, 2016, 2015 and 2014, respectively, were outstanding and were excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 677, 5,310 and 0 restricted stock units for the fiscal year ended June 30, 2016, 2015 and 2014 were outstanding and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.