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

9 Months Ended

Mar. 31, 2020

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

NOTE 13 – NET EARNINGS (LOSS) ATTRIBUTABLE TO THE ESTÉE LAUDER COMPANIES INC. PER COMMON SHARE

Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share (“basic EPS”) is computed by dividing net earnings (loss) 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 (loss) 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 March 31						Nine Months Ended March 31
(In millions, except per share data)	2020		2019		2020		2019
Numerator:
Net earnings (loss) attributable to The Estée Lauder Companies Inc.	$	(6)	$	555	$	1,146	$	1,628

Denominator:
Weighted-average common shares outstanding – Basic	360.2		361.9		360.6		364.0
Effect of dilutive stock options	—		4.6		4.6		4.8
Effect of PSUs	—		0.3		0.3		0.3
Effect of RSUs	—		1.5		1.6		1.8
Weighted-average common shares outstanding – Diluted	360.2		368.3		367.1		370.9

Net earnings (loss) attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	(0.02)	$	1.53	$	3.18	$	4.47
Diluted	$	(0.02)	$	1.51	$	3.12	$	4.39

For the three months ended March 31, 2020, the effects of potentially dilutive stock options, PSUs and RSUs were excluded from the computation of diluted EPS as they were anti-dilutive due to the net loss incurred during the period. As of March 31, 2020 and 2019, the number of shares of Class A Common Stock underlying options that were excluded in the computation of diluted EPS because their inclusion would be anti-dilutive was 1.3 million shares and 1.6 million shares, respectively. As of March 31, 2020 and 2019, 1.2 million and 1.3 million shares, respectively, of Class A Common Stock underlying 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 12 – Stock Programs.