Earnings Per Share

9 Months Ended

Jun. 26, 2015

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 represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and non-vested), vesting of outstanding restricted stock units, and shares issued under our employee stock purchase plan. The calculation of dilutive shares outstanding excludes out-of-the-money stock options (i.e., such options' exercise prices were greater than the average market price of our common shares for the period) because their inclusion would have been antidilutive.

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
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	35,506	$	39,779	$	134,837	$	160,162

Denominator:
Weighted-average shares outstanding—basic	102,670		102,350		102,494		102,131
Potential common shares from options to purchase common stock	827		616		903		500
Potential common shares from restricted stock units	608		976		730		974
Weighted-average shares outstanding—diluted	104,105		103,942		104,127		103,605

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.35	$	0.39	$	1.32	$	1.57
Diluted	$	0.34	$	0.38	$	1.29	$	1.55

Antidilutive awards excluded from calculation:
Stock options	4,617		3,563		3,962		3,915
Restricted stock units	10		184		6		1,756