NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

12 Months Ended

Jun. 30, 2020

NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

Net loss attributable to Coty Inc. common stockholders per common share (“basic EPS”) is computed by dividing net loss attributable to Coty Inc. less any dividends on Convertible Series B Preferred Stock by the weighted-average number of common shares outstanding during the period.

Net loss attributable to Coty Inc. common stockholders per common share assuming dilution (“diluted EPS”) is computed by adjusting the numerator used in basic EPS to add back the dividends applicable to the Convertible Series B Preferred Stock and using the basic EPS weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period as the denominator. Potentially dilutive securities consist of non-qualified stock options, Series A and Series A-1 Preferred Stock, RSUs, unvested restricted stock awards and potential shares resulting from the conversion of the Convertible Series B Preferred Stock as of June 30, 2020, 2019 and 2018. The dilutive effect of the outstanding instruments, excluding the Convertible Series B Preferred Stock is reflected in diluted EPS by application of the treasury stock method. The dilutive effect of the Convertible Series B Preferred Stock is reflected in diluted EPS by application of the if-converted method.

Net loss 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 2020, 2019 and 2018. 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,
	2020		2019		2018
Amounts attributable to Coty Inc.:
Net loss from continuing operations	$	(1,093.9)	$	(3,905.2)	$	(403.3)
Convertible Series B Preferred Stock dividends	(6.5)		—		—
Net loss from continuing operations attributable to common stockholders	(1,100.4)		(3,905.2)		(403.3)
Net income from discontinued operations, net of tax	87.2		121.0		234.5
Net (loss) income attributable to common stockholders	$	(1,013.2)	$	(3,784.2)	$	(168.8)

Weighted-average common shares outstanding:
Weighted-average common shares outstanding—Basic	759.1		751.2		749.7
Effect of dilutive stock options and Series A/A-1 Preferred Stock^(a)	—		—		—
Effect of restricted stock and RSUs^(b)	—		—		—
Effect of Convertible Series B Preferred Stock^(c)	—		—		—
Weighted-average common shares outstanding—Diluted	759.1		751.2		749.7

(Loss) Earnings per common share
(Loss) from continued operations per common share - basic	$	(1.45)	$	(5.20)	$	(0.54)
(Loss) from continued operations per common share - diluted	$	(1.45)	$	(5.20)	$	(0.54)

Earnings from discontinued operations - basic	$	0.12	$	0.16	$	0.31
Earnings from discontinued operations - diluted	$	0.12	$	0.16	$	0.31

(Loss) per common share - basic	$	(1.33)	$	(5.04)	$	(0.23)
(Loss) per common share - diluted	$	(1.33)	$	(5.04)	$	(0.23)

^(a)As of June 30, 2020, 2019 and 2018, outstanding stock options and Series A/A-1 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.

^(b)As of June 30, 2020, 2019 and 2018, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period.

^(c)As of June 30, 2020, Convertible Series B Preferred Stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period.