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

6 Months Ended

Dec. 31, 2016

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 12 — 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 December 31				Six Months Ended December 31
(In millions, except per share data)	2016		2015		2016		2015
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc.	$	428	$	447	$	722	$	756
Denominator:
Weighted-average common shares outstanding — Basic	366.9		369.6		366.7		371.1
Effect of dilutive stock options	3.7		4.4		4.0		4.4
Effect of PSUs	0.2		—		0.2		—
Effect of RSUs	1.8		1.9		2.0		1.9
Effect of PSUs based on TSR	—		0.1		—		0.1
Weighted-average common shares outstanding — Diluted	372.6		376.0		372.9		377.5
Net earnings attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	1.17	$	1.21	$	1.97	$	2.04
Diluted	1.15		1.19		1.94		2.00

As of December 31, 2016 and 2015, outstanding options to purchase 2.5 million and 0.2 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 December 31, 2016 and 2015, 0.8 million shares 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 11 — Stock Programs.