NET INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

3 Months Ended

Sep. 30, 2022

NET INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE

Reconciliation between the numerators and denominators of the basic and diluted income per share (“EPS”) computations is presented below:


	Three Months Ended September 30,
	2022		2021

Amounts attributable to Coty Inc.:
Net income from continuing operations	$	128.6	$	226.0
Convertible Series B Preferred Stock dividends	(3.3)		(123.0)
Net income from continuing operations attributable to common stockholders	125.3		103.0

Net income attributable to common stockholders	$	125.3	$	103.0

Weighted-average common shares outstanding:
Weighted-average common shares outstanding—Basic	842.0		777.6
Effect of dilutive stock options and Series A Preferred Stock (a)	—		—
Effect of restricted stock and RSUs (b)	16.5		10.1
Effect of Convertible Series B Preferred Stock (c)	23.7		—
Effect of Forward Repurchase Contracts (d)	—		—
Weighted-average common shares outstanding—Diluted	882.2		787.7

Earnings per common share:
Earnings from continuing operations per common share - basic	$	0.15	$	0.13
Earnings from continuing operations per common share - diluted (e)	0.15		0.13




Earnings per common share - basic	0.15		0.13
Earnings per common share - diluted (e)	0.15		0.13

(a) For the three months ended September 30, 2022 and 2021, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 6.2 million and 11.4 million shares of Common Stock, respectively, were anti-dilutive and excluded from the computation of diluted EPS.

(b) For the three months ended September 30, 2021, there were 5.0 million weighted average anti-dilutive RSUs excluded from the computation of diluted EPS.

(c) For the three months ended September 30, 2021, 163.1 million weighted average dilutive shares of Convertible Series B Preferred Stock were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive.

(d) For the three months ended September 30, 2022, 3.1 million weighted average dilutive shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive.

(e) Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans, the convertible Series B Preferred Stock, and the Forward Repurchase Contracts. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted stock and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock and the Forward Repurchase Contracts. The treasury method typically does not adjust the net income attributable to Coty Inc., while the if-converted method requires an adjustment to reverse the impact of the preferred stock dividends of $3.3 and $123.0, and fair market value adjustments of $27.7 and $0.0, respectively, if dilutive, for the three months ended September 30, 2022 and 2021 on net income applicable to common stockholders during the period.