Net Income (Loss) Per Common Share

9 Months Ended

Mar. 28, 2025

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


	Three Months Ended				Nine Months Ended
	March 28, 2025		March 29, 2024			March 28, 2025		March 29, 2024
	(in millions, except per share data)
Net income (loss) from continuing operations	$	772	$	(8)		$	1,391	$	(519)
Less: dividends allocated to preferred shareholders	4		15			12		44
Less: income attributable to participating securities(1)	13		(1)			25		—
Net income (loss) from continuing operations attributable to common shareholders - basic	755		(22)			1,354		(563)
Net income (loss) from discontinued operations, net of taxes	(248)		135			213		(318)
Net income (loss) attributable to common shareholders - basic	$	507	$	113		$	1,567	$	(881)

Net income (loss) from continuing operations attributable to common shareholders - basic	$	755	$	(22)		$	1,354	$	(563)
Re-allocation of participating securities considered potentially dilutive securities	—		—			1		—
Net income (loss) from continuing operations attributable to common shareholders - diluted	755		(22)			1,355		(563)
Net income (loss) from discontinued operations, net of taxes	(248)		135			213		(318)
Net income (loss) attributable to common shareholders - diluted	$	507	$	113		$	1,568	$	(881)

Weighted average shares outstanding:
Basic	348		326			346		324
RSUs, PSUs, ESPP, and the convertible notes	10		9			12		—
Diluted	358		335			358		324

Net income (loss) per common share
Continuing operations - basic	$	2.17	$	(0.07)		$	3.91	$	(1.74)
Discontinued operations - basic	$	(0.71)	$	0.42		$	0.62	$	(0.98)
Net income (loss) per common share - basic	$	1.46	$	0.35		$	4.53	$	(2.72)

Continuing operations - diluted	$	2.11	$	(0.07)		$	3.79	$	(1.74)
Discontinued operations - diluted	$	(0.69)	$	0.41		$	0.59	$	(0.98)
Net income (loss) per common share - diluted	$	1.42	$	0.34		$	4.38	$	(2.72)

Anti-dilutive potential common shares excluded	—		—			—		13

(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 allocated to preferred shareholders 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 preferred shares. For the nine months ended March 29, 2024, 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. For the three and nine months ended March 28, 2025 and three months ended March 29, 2024, based on the Company’s average stock price during the period, an insignificant number of common shares subject to outstanding equity awards were anti-dilutive.