LOSS PER SHARE AND SHARE REPURCHASES

We compute loss per share ("EPS") using the two-class method, which is a loss allocation formula that determines loss per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents to the extent any dividends are declared and paid on our common stock. We compute basic EPS by dividing net income (loss) allocated to common shareholders by the weighted-average number of shares outstanding during the period. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the period.



	Three Months Ended
	March 31
(Shares in millions)	2016			2015
Numerator from continuing operations:
Loss from continuing operations, less amounts attributable to noncontrolling interests	$	(156.3	)	$	(143.5	)
Less: Loss allocated to participating securities	1.9			1.9
Less: Earnings allocated to convertible preferred stock	(1.8		)	—
Loss from continuing operations allocated to common shareholders	(156.2		)	(141.6		)
Numerator from discontinued operations:
Loss from discontinued operations	$	(9.6	)	$	(3.8	)
Less: Loss allocated to participating securities	.1			.3
Loss allocated to common shareholders	(9.5		)	(3.5		)
Numerator:
Net loss attributable to Avon	$	(165.9	)	$	(147.3	)
Less: Loss allocated to participating securities	2.0			2.0
Less: Earnings allocated to convertible preferred stock	(1.8		)	—
Loss allocated to common shareholders	(165.7		)	(145.3		)
Denominator:
Basic EPS weighted-average shares outstanding	435.9			434.9
Diluted effect of assumed conversion of stock options	—			—
Diluted EPS adjusted weighted-average shares outstanding	435.9			434.9
Loss per Common Share from continuing operations:
Basic	$	(.36	)	$	(.33	)
Diluted	(.36		)	(.33		)
Loss per Common Share from discontinued operations:
Basic	$	(.02	)	$	(.01	)
Diluted	(.02		)	(.01		)
Loss per Common Share:
Basic	$	(.38	)	$	(.33	)
Diluted	(.38		)	(.33		)

Amounts in the table above may not necessarily sum due to rounding.

During the three months ended March 31, 2016 and 2015, we did not include stock options to purchase 11.0 million shares and 15.5 million shares, respectively, of Avon common stock in the calculation of diluted EPS as we had a net loss attributable to Avon. The inclusion of these shares would decrease the net loss per share, and therefore, their inclusion would be anti-dilutive.

For the three months ended March 31, 2016, it is more dilutive to assume the Series C Convertible Preferred Stock is not converted into common stock and therefore the weighted-average outstanding shares outstanding was not adjusted by the as-if converted Series C Convertible Preferred Stock because the effect would decrease the net loss per share, and therefore, their inclusion would be anti-dilutive. If the as-if converted Series C Convertible Preferred Stock had been dilutive, approximately 87.1 million additional shares would have been included in the diluted weighted average number of shares outstanding for the three months ended March 31, 2016. See Note 7, Series C Convertible Preferred Stock.

We purchased approximately .9 million shares of Avon common stock for $3.5 during the first three months of 2016, as compared to approximately .2 million shares of Avon common stock for $1.9 during the first three months of 2015, through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units