Earnings Per Share

9 Months Ended

Jun. 30, 2020

The Company presents both basic and diluted earnings per share ("EPS") amounts. Basic EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares and ordinary equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock options, unvested restricted stock and unvested performance share awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. For unvested restricted stock and unvested performance share awards, assumed proceeds under the treasury stock method would include unamortized compensation cost.

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions):


	Three Months Ended June 30,						Nine Months Ended June 30,
	2020		2019		2020		2019
Income (loss) Available to Ordinary Shareholders
Income (loss) from continuing operations	$	(182)	$	141	$	190	$	488
Income from discontinued operations	—		4,051		—		4,574
Basic and diluted income (loss) available to shareholders	$	(182)	$	4,192	$	190	$	5,062

Weighted Average Shares Outstanding
Basic weighted average shares outstanding	744.0		870.9		756.3		898.4
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards	—		4.3		2.6		3.8
Diluted weighted average shares outstanding	744.0		875.2		758.9		902.2

Antidilutive Securities
Options to purchase shares	—		0.7		1.6		1.9

For the three months ended June 30, 2020, the total number of potential dilutive shares due to stock options, unvested restricted stock and unvested performance share awards was 1.5 million. However, these items were not included in the computation of diluted loss per share for the three months ended June 30, 2020 since to do so would decrease the loss per share.