Note 7—Net Income (Loss) per Common Share

Basic net income (loss) per common share is calculated by dividing net income (loss) attributed to Cott Corporation by the weighted average number of common shares outstanding during the periods presented. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributed to Cott Corporation by the weighted average number of common shares outstanding adjusted to include the effect, if dilutive, of the exercise of in-the-money stock options, Performance-based RSUs, Time-based RSUs and Convertible Preferred Shares during the periods presented. The dilutive effect of the Convertible Preferred Shares was calculated using the if-converted method. In applying the if-converted method, the Convertible Preferred Shares are assumed to have been converted at the beginning of the period (or at the time of issuance, if later). Set forth below is a reconciliation of the numerator and denominator for the diluted earnings per common share computations for the periods indicated:

Numerator


		For the Three Months Ended					For the Six Months Ended
(in millions of U.S. dollars)		July 4, 2015		June 28, 2014			July 4, 2015			June 28, 2014

Net income (loss) attributed to Cott Corporation		$	2.2	$	(5.9	)	$	(3.8	)	$	(10.0	)
Plus:
Accumulated dividends on convertible preferred shares	¹		—		—			—			—
Foreign exchange impact on redemption of convertible preferred shares	¹		—		—			—			—

Diluted net income (loss) attributed to Cott Corporation		$	2.2	$	(5.9	)	$	(3.8	)	$	(10.0	)

Denominator


		For the Three Months Ended				For the Six Months Ended
(in thousands)		July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Weighted average number of shares outstanding - basic			99,573		94,234		96,384		94,276
Dilutive effect of stock options			176		—		—		—
Dilutive effect of Performance-based RSUs	²		—		—		—		—
Dilutive effect of Time-based RSUs			416		—		—		—
Dilutive effect of Convertible Preferred Shares	¹		—		—		—		—

Adjusted weighted average number of shares outstanding - diluted			100,165		94,234		96,384		94,276

For the three months ended July 4, 2015, we excluded the impact of the Convertible Preferred Shares from the computation of diluted net income per share as the Convertible Preferred Shares were anti-dilutive for purposes of calculating diluted net income per share as a result of the addition of the accumulated dividends and foreign exchange impact on redemption to net income per common share attributable to Cott Corporation to the numerator and the addition of 12,761,261 incremental common shares assumed outstanding applying the if-converted method to the denominator in such calculation.

2.	For the three months ended July 4, 2015, we excluded the outstanding Performance-based RSUs from the computation of diluted net income per share as the performance conditions would not have been satisfied assuming July 4, 2015 was the end of the performance measurement period.

At July 4, 2015, we excluded 991,259 (June 28, 2014—832,951) stock options from the computation of diluted net income (loss) per share because the options’ exercise price was greater than the average market price of the common shares. In addition, we excluded the impact of the remaining stock options, Performance-based RSUs, Time-based RSUs and Convertible Preferred Shares from the computation of diluted net loss per share as they were considered anti-dilutive for purposes of calculating loss per share for the six months ended July 4, 2015 and the three and six months ended June 28, 2014.