Earnings Per Share

3 Months Ended

Sep. 30, 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 September 30,
	2016				2015
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	103,117	$	103,117	$	87,517	$	87,517
Net income attributable to non-controlling interest		-		-		418		418
Net income attributable to Harman International Industries, Incorporated	$	103,117	$	103,117	$	87,099	$	87,099
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		70,889		70,889		72,032		72,032
Employee stock options		-		469		-		524
Total weighted average shares outstanding		70,889		71,358		72,032		72,556
Earnings per Share:
Earnings per share	$	1.45	$	1.45	$	1.21	$	1.20

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 189,556 and 191,515 shares of our common stock at September 30, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share as they would have been antidilutive. In addition, 320,586 and 263,066 restricted stock units at September 30, 2016 and 2015, respectively, were outstanding and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.