

8.	Earnings (Loss) per Share

In fiscal 2016, 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 represent 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.

In fiscal 2015 and 2014, basic and diluted earnings (loss) per share were 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, were considered participating securities as holders were entitled to receive non-forfeitable dividends during the vesting term. Diluted earnings per share included securities that could potentially dilute basic earnings per share during a reporting period, for which the Company 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.



	2016		2015		2014
Earnings (loss) per share numerator:
Income (loss) from continuing operations attributable to common shareholders before allocation of earnings to participating securities	$	489.0	$	236.6	$	(22.0	)
Less: earnings allocated to participating securities	—		2.0		—
Income (loss) from continuing operations attributable to common shareholders, after earnings allocated to participating securities	489.0		234.6		(22.0		)

Income (loss) from discontinued operations	154.7		88.1		(297.3		)
Less: earnings from discontinued operations allocated to participating securities	—		0.7		—
Income (loss) from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities	154.7		87.4		(297.3		)
Net income (loss) attributable to common shareholders, after allocation of earnings to participating securities	$	643.7	$	322.0	$	(319.3	)
Earnings (loss) per share denominator:
Weighted-average shares outstanding - basic	110.6		115.8		64.9
Impact of dilutive securities	0.9		1.4		—
Weighted-average shares outstanding - diluted	111.5		117.2		64.9
Basic earnings (loss) per share attributable to common shareholders
Income (loss) from continuing operations	$	4.42	$	2.03	$	(0.34	)
Income (loss) from discontinued operations	1.40		0.75		(4.58		)
Net income (loss) attributable to common shareholders	$	5.82	$	2.78	$	(4.92	)
Diluted earnings (loss) per share attributable to common shareholders
Income (loss) from continuing operations	$	4.39	$	2.00	$	(0.34	)
Income (loss) from discontinued operations	1.39		0.75		(4.58		)
Net income (loss) attributable to common shareholders	$	5.77	$	2.75	$	(4.92	)

The computation of diluted earnings per share for fiscal 2016, 2015 and 2014 excludes approximately 1.7 million, 0.1 million and 5.7 million, respectively, of equity awards because the effect would have been anti-dilutive. As the Company incurred a net loss in fiscal 2014, there was no allocation of the undistributed loss to participating securities because the effect would have been anti-dilutive to basic and diluted earnings per share.