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

12 Months Ended

Jun. 30, 2013

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 16 – 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 numerators and denominators of the basic and diluted EPS computations is as follows:

	Year Ended June 30
(In millions, except per share data)	2013		2012		2011
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc.	$	1,019.8	$	856.9	$	700.8
Denominator:
Weighted-average common shares outstanding – Basic	387.6		388.7		394.0
Effect of dilutive stock options	5.5		6.3		6.5
Effect of RSUs	1.4		1.8		1.9
Effect of performance share units based on TSR	0.1		—		—
Effect of MSU	0.3		0.2		—
Weighted-average common shares outstanding – Diluted	394.9		397.0		402.4
Net earnings attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	2.63	$	2.20	$	1.78
Diluted	2.58		2.16		1.74

As of June 30, 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 and 2011, 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, 2013, 2012 and 2011, 0.5 million, 0.6 million and 0.7 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.