Mallinckrodt Plc Just Filed Its Quarterly Report: 7.Earnings per Share...

7.
Earnings per Share

In fiscal 2015, basic and diluted earnings per share were computed using the two-class method. The two-class method is an earnings allocation that determines earnings per share for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stock awards, issued in conjunction with the acquisition of Questcor in August 2014, were considered participating securities as holders were entitled to receive non-forfeitable dividends during the vesting term. Diluted earnings per share includes securities that could potentially dilute basic earnings per share during a reporting period, for which the Company includes all share-based compensation awards other than participating securities. Dilutive securities, including participating securities, are not included in the computation of loss per share when the Company reports a net loss from continuing operations as the impact would be anti-dilutive.
In fiscal 2016, following the September 2015 vesting of substantially all restricted stock issued in conjunction with the acquisition of Questcor, the Company utilized the treasury stock method in calculating diluted earnings per share. Basic earnings per share were computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings per share were computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period.
 
Three Months Ended
 
Nine Months Ended
 
June 24, 2016
 
June 26, 2015
 
June 24, 2016
 
June 26, 2015
Earnings per share numerator:
 
 
 
 
 
 
 
Income from continuing operations attributable to common shareholders before allocation of earnings to participating securities
$
195.7

 
$
55.6

 
$
431.9

 
$
218.2

Less: earnings allocated to participating securities

 
0.4

 

 
2.0

Income from continuing operations attributable to common shareholders, after earnings allocated to participating securities
195.7

 
55.2

 
431.9

 
216.2

Income from discontinued operations
3.6

 
2.4

 
96.8

 
31.3

Less: earnings from discontinued operations allocated to participating securities

 

 

 
0.3

Income from discontinued operations attributable to common shareholders, after allocation of earnings to participating securities
3.6

 
2.4

 
96.8

 
31.0

Net income attributable to common shareholders, after allocation of earnings to participating securities
$
199.3

 
$
57.6

 
$
528.7

 
$
247.2

Earnings per share denominator:
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic
108.6

 
116.3

 
111.7

 
115.5

Impact of dilutive securities
0.8

 
1.5

 
0.9

 
1.6

Weighted-average shares outstanding - diluted
109.4

 
117.8

 
112.6

 
117.1

Basic earnings per share attributable to common shareholders
 
 
 
 
 
 
 
Income from continuing operations
$
1.80

 
$
0.47

 
$
3.87

 
$
1.87

Income from discontinued operations
0.03

 
0.02

 
0.87

 
0.27

Net income attributable to common shareholders
$
1.84

 
$
0.50

 
$
4.73

 
$
2.14

Diluted earnings per share attributable to common shareholders
 
 
 
 
 
 
 
Income from continuing operations
$
1.79

 
$
0.47

 
$
3.84

 
$
1.85

Income from discontinued operations
0.03

 
0.02

 
0.86

 
0.26

Net income attributable to common shareholders
$
1.82

 
$
0.49

 
$
4.70

 
$
2.11



The computation of diluted earnings per share for the three and nine months ended June 24, 2016 excludes approximately 1.5 million and 1.4 million, respectively, of equity awards because the effect would have been anti-dilutive. There were no anti-dilutive equity awards excluded from the computation of diluted earnings per share for the three and nine months ended June 26, 2015.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever Mallinckrodt Plc makes a similar move, sign up!

Other recent filings from the company include the following:

Mallinckrodt Plc director just picked up 5,601 shares - Sept. 22, 2017
Mallinckrodt Plc director just declared ownership of no shares of Mallinckrodt Plc - Sept. 22, 2017
Mallinckrodt Announces Election Of David Norton TO ITS BOARD OF DIRECTORS - Sept. 20, 2017
Mallinckrodt Plc's Chief Public Affairs Officer just picked up 1,280 shares - Sept. 1, 2017

Auto Refresh

Feedback