NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

Net (loss) income attributable to Coty Inc. per common share (“basic EPS”) is computed by dividing net income (loss) attributable to Coty Inc. by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to Coty Inc. per common share assuming dilution (“diluted EPS”) is computed by using the basic EPS weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of nonqualified stock options, Series A Preferred Stock and RSUs as of June 30, 2018 and 2017. The dilutive effect of these outstanding instruments is reflected in diluted EPS by application of the treasury stock method.

Net (loss) income attributable to Coty Inc. is adjusted through the application of the two-class method of income per share to reflect a portion of the periodic adjustment of the redemption value in excess of fair value of the redeemable noncontrolling interests. There is no excess of redemption value over fair value of the redeemable noncontrolling interests in fiscal 2018, 2017 and 2016. In addition, there are no participating securities requiring the application of the two-class method of income per share.

Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below:



	Year Ended June 30,
	2018			2017			2016
Net (loss) income attributable to Coty Inc.	$	(168.8	)	$	(422.2	)	$	156.9
Weighted-average common shares outstanding—Basic	749.7			642.8			345.5
Effect of dilutive stock options and Series A Preferred Stock^(a)	—			—			5.7
Effect of restricted stock and RSUs^(b)	—			—			3.0
Weighted-average common shares outstanding—Diluted	749.7			642.8			354.2
Net (loss) income attributable to Coty Inc. per common share:
Basic	$	(0.23	)	$	(0.66	)	$	0.45
Diluted	(0.23		)	(0.66		)	0.44

^(a)

As of June 30, 2018 and 2017, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of common stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016, outstanding stock options and Series A Preferred Stock to purchase 3.0 million shares of Common Stock are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.


^(b)	As of June 30, 2018 and 2017, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016, there were 0.1 million anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.