

7.	Earnings (Loss) per Share

Beginning in the fourth quarter of fiscal 2014, basic earnings (loss) per share was computed using the two-class method. The two-class method is an earnings allocation that determines earnings per share for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company's restricted stock awards, issued in conjunction with the Questcor Acquisition in August 2014, are considered participating securities as holders are entitled to receive non-forfeitable dividends during the vesting term. Diluted earnings per share includes securities that could potentially dilute basic earnings per share during a reporting period, which includes all share-based compensation awards other than participating securities. Dilutive securities, including participating securities, are not included in the computation of loss per share when the Company reports a net loss from continuing operations as the impact would be anti-dilutive.

Prior to the fourth quarter of fiscal 2014, basic earnings (loss) per share was computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings (loss) per share was computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represented the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculated the dilutive effect of outstanding restricted share units and share options on earnings (loss) per share by application of the treasury stock method.



	Three Months Ended					Nine Months Ended
	June 26, 2015		June 27, 2014			June 26, 2015		June 27, 2014
Earnings (loss) per share numerator:
Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities	$	57.5	$	(24.3	)	$	226.1	$	33.8
Less: earnings allocated to participating securities	0.4		—			2.0		—
Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities	57.1		(24.3		)	224.1		33.8
Income (loss) from discontinued operations	0.5		0.2			23.4		(0.7		)
Less: earnings from discontinued operations allocated to participating securities	—		—			0.2		—
Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities	0.5		0.2			23.2		(0.7		)
Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities	$	57.6	$	(24.1	)	$	247.3	$	33.1
Earnings (loss) per share denominator:
Weighted-average shares outstanding - basic	116.3		58.5			115.5		58.2
Impact of dilutive securities	1.5		—			1.6		0.8
Weighted-average shares outstanding - diluted	117.8		58.5			117.1		59.0
Basic earnings (loss) per share attributable to common shareholders
Income (loss) from continuing operations	$	0.49	$	(0.42	)	$	1.94	$	0.58
Income (loss) from discontinued operations	—		—			0.20		(0.01		)
Net income (loss) attributable to common shareholders	$	0.50	$	(0.41	)	$	2.14	$	0.57
Diluted earnings (loss) per share attributable to common shareholders
Income (loss) from continuing operations	$	0.48	$	(0.42	)	$	1.91	$	0.57
Income (loss) from discontinued operations	—		—			0.20		(0.01		)
Net income (loss) attributable to common shareholders	$	0.49	$	(0.41	)	$	2.11	$	0.56

There were no anti-dilutive equity awards excluded from the computation of earnings per share for the three and nine months ended June 26, 2015.

The computation of diluted earnings per share for the three months ended June 27, 2014 excludes 3.4 million shares of equity awards because the effect of including such shares would have been anti-dilutive due to the net loss for the period. Had these awards not been anti-dilutive, they would have resulted in dilution of 1.0 million shares for the three months ended June 27, 2014. The computation of diluted earnings per-share for the nine months ended June 27, 2014 excludes less than 0.1 million shares of equity awards because the effect of including such shares would have been anti-dilutive.