Earnings Per Share

6 Months Ended

Mar. 27, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period. Potentially dilutive shares include the hypothetical number of shares issued under the assumed exercise of outstanding stock options, vesting of outstanding restricted stock units, and shares issued under our employee stock purchase plan.

Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period presented, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS.

The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts):

	Fiscal Quarter Ended				Fiscal Year-To-Date Ended
	March 27, 2015		March 28, 2014		March 27, 2015		March 28, 2014
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	57,974	$	75,868	$	99,331	$	120,383
Denominator:
Weighted-average shares outstanding—basic	102,509		102,291		102,406		102,021
Potential common shares from options to purchase common stock	889		637		941		445
Potential common shares from restricted stock units	506		1,006		750		994
Weighted-average shares outstanding—diluted	103,904		103,934		104,097		103,460
Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.57	$	0.74	$	0.97	$	1.18
Diluted	$	0.56	$	0.73	$	0.95	$	1.16
Antidilutive awards excluded from calculation:
Stock options	4,604		3,597		3,684		4,075
Restricted stock units	934		290		106		1,170