Earnings Per Share

12 Months Ended

Jul. 02, 2016

Note 4. Earnings Per Share

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



	Years Ended
	July 2, 2016			June 27, 2015			June 28, 2014
Numerator:
Net income (loss)	$	9.3		$	(3.4	)	$	10.7
Less: Cumulative dividends on Series A Preferred Stock	(0.8		)	—			—
Less: Accretion of Series A Preferred Stock	(11.7		)	—			—
Net income (loss) attributable to common stockholders	(3.2		)	(3.4		)	10.7
Denominator:
Weighted-average number of common shares outstanding
Basic	59.1			58.8			58.8
Effect of dilutive securities from stock-based benefit plans	—			—			—
Diluted	59.1			58.8			58.8
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.05	)	$	(0.06	)	$	0.18
Diluted	$	(0.05	)	$	(0.06	)	$	0.18

On August 1, 2015, JDSU distributed 47.1 million shares, or 80.1% of the outstanding shares of the Company's common stock to existing holders of JDSU common stock. The weighted average number of common stock 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 July 2, 2016. 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. Basic and diluted net income per share for the twelve months ended June 27, 2015 and June 28, 2014 is calculated using the shares of the Company's common stock outstanding on August 1, 2015, as if such shares were outstanding for the entire period.

The dilutive effect of stock-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 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 (loss).

For the year ended July 2, 2016, 1.2 million weighted average shares were excluded from the calculation of diluted shares because their inclusion would have been antidilutive.