Net Income (Loss) Per Common Share

9 Months Ended

Mar. 29, 2024

The following table presents the computation of basic and diluted income (loss) per common share:


	Three Months Ended				Nine Months Ended
	March 29, 2024		March 31, 2023			March 29, 2024		March 31, 2023
	(in millions, except per share data)
Net income (loss)	$	135	$	(571)		$	(837)	$	(975)
Less: cumulative dividends on Preferred Stock	15		9			44		9
Less: income attributable to participating securities(1)	7		—			—		—
Net income (loss) attributable to common shareholders	$	113	$	(580)		$	(881)	$	(984)


Weighted average shares outstanding:
Basic	326		319			324		318
RSUs, PSUs, ESPP, and the convertible notes	9		—			—		—
Diluted	335		319			324		318
Net income (loss) per common share
Basic	$	0.35	$	(1.82)		$	(2.72)	$	(3.09)
Diluted	$	0.34	$	(1.82)		$	(2.72)	$	(3.09)
Anti-dilutive potential common shares excluded	—		15			13		15

(1) Preferred Stock represents participating securities because they participate in any dividends on shares of common stock on a pari passu, pro rata basis. Preferred Stock does not participate in undistributed net losses.

Basic net income (loss) per share attributable to common shareholders is computed using (i) net income (loss) less (ii) dividends paid to holders of Preferred Shares less (iii) net income (loss) attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common shareholders is computed as (i) basic net income (loss) attributable to common shareholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The "if-converted" method is used to determine the dilutive impact for the convertible notes and the Preferred Shares. The treasury stock method is used to determine the dilutive impact of unvested equity awards.

Potentially dilutive common shares include dilutive outstanding employee stock options, RSUs and PSUs, rights to purchase shares of common stock under the Company’s ESPP, shares issuable in connection with the Company’s convertible notes, and the Preferred Shares. For the three months ended March 29, 2024, all common shares subject to outstanding equity awards are included in the calculation of diluted shares based on the Company’s average stock price during the period. For the three months ended March 31, 2023 and the nine months ended March 29, 2024 and March 31, 2023, the Company recorded a net loss, and all shares subject to outstanding equity awards were excluded from the calculation of diluted shares for those periods because their impact would have been anti-dilutive.