NOTE 17 – 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)	2018		2017		2016
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc.	$	1,108	$	1,249	$	1,115


Denominator:
Weighted-average common shares outstanding – Basic	368.0		367.1		370.0
Effect of dilutive stock options	5.2		3.8		4.6
Effect of PSUs	0.4		0.2		0.1
Effect of RSUs	2.1		1.9		1.8
Effect of performance share units based on TSR	—		—		0.1

Weighted-average common shares outstanding – Diluted	375.7		373.0		376.6


Net earnings attributable to The Estée Lauder Companies Inc. per common share:
Basic	$	3.01	$	3.40	$	3.01
Diluted	2.95		3.35		2.96

As of June 30, 2018, there were no anti-dilutive shares of Class A Common Stock underlying options to be excluded in the computation of diluted EPS. As of June 30, 2017 and 2016, 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 were 1.8 million and 0.2 million, respectively. As of June 30, 2018, 2017 and 2016, 1.0 million, 1.0 million and 0.5 million, 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 16 – Stock Programs.