Earnings Per Share

9 Months Ended

Mar. 31, 2016

Note 7 – Earnings Per Share

We apply the two-class method when computing earnings per share, which requires that net income per share for each class of shares entitled to dividends be calculated assuming all of our net income is distributed as dividends to these shareholders based on their contractual rights.

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

	Three Months Ended March 31,
	2016						2015
	Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	88,819		$	88,819		$	70,249		$	70,249
Net loss attributable to noncontrolling interest		(5	)		(5	)		(46	)		(46	)
Net income attributable to Harman International Industries, Incorporated	$	88,824		$	88,824		$	70,295		$	70,295
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		72,020			72,020			69,946			69,946
Employee stock options		0			622			0			849
Total weighted average shares outstanding		72,020			72,642			69,946			70,795
Earnings per Share:
Earnings per share	$	1.23		$	1.22		$	1.00		$	0.99

	Nine months ended March 31,
	2016				2015
	Basic		Diluted		Basic			Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	289,522	$	289,522	$	269,347		$	269,347
Net income (loss) attributable to noncontrolling interest		702		702		(156	)		(156	)
Net income attributable to Harman International Industries, Incorporated	$	288,820	$	288,820	$	269,503		$	269,503
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		72,046		72,046		69,557			69,557
Employee stock options		0		478		0			765
Total weighted average shares outstanding		72,046		72,524		69,557			70,322
Earnings per Share:
Earnings per share	$	4.01	$	3.98	$	3.87		$	3.83

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities, as defined under GAAP, and are included in the computation of earnings per share pursuant to the two-class method.

Certain options were outstanding and not included in the computation of diluted net earnings per share because the assumed exercise of these options would have been antidilutive. Options to purchase 202,463 and 3,892 shares of our common stock for the three months ended March 31, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 34,035 and 0 restricted stock units for the three months ended March 31, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share because they also would have been antidilutive. Options to purchase 195,300 and 203,582 shares of our common stock for the nine months ended March 31, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition 215,589 and 27,589 restricted stock units for the nine months ended March 31, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.