Earnings Per Share

3 Months Ended

Sep. 26, 2015

Note 4. Earnings Per Share

The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data):

	Three Months Ended
	September 26, 2015			September 27, 2014
Numerator:
Net (loss) income	$	(0.2	)	$	4.3
Less: Dividends on Series A Preferred Stock		(0.1	)		—
Less: Accretion of Series A Preferred Stock		(9.7	)		—
Net (loss) income attributable to common stockholders		(10.0	)		4.3

Denominator:
Weighted-average number of common shares outstanding - basic and diluted		58.8			58.8
Net (loss) income per share attributable to common stockholders	$	(0.17	)	$	0.07

On August 1, 2015, JDSU distributed 58.8 million shares of Lumentum common stock to existing holders of JDSU common stock. Basic earnings per share for the three months ended September 26, 2015 is calculated by dividing net income for the period by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding is calculated as the number of shares of common stock outstanding immediately following the Separation, and the weighted average number of shares outstanding following the Separation through September 26, 2015. Diluted earnings per share is calculated by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period beginning after the Separation.

The dilutive effect of share-based awards is reflected in diluted earnings per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense, the tax benefits or shortfalls recorded to additional paid-in capital and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense and tax benefits or shortfalls collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the company's common stock can result in a greater dilutive effect from potentially dilutive awards.

The dilutive effect of the redeemable convertible preferred stock is reflected in diluted earnings per share by the application of the if-converted method. The number of shares is increased for the assumed conversion of the instrument. Additionally, cumulative dividends and accretion from measuring the instrument at its redemption value are added back to net income.

We excluded from the calculation of diluted earnings per share all anti-dilutive instruments.

The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because the effect would have been anti-dilutive (in millions):

	Three Months Ended
	September 26, 2015
Restricted stock units		1.8
Redeemable convertible preferred stock		1.5
Stock options and employee stock purchase plan		0.1
Total potentially dilutive securities		3.4