. 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.

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.

Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and non-vested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes out-of-the-money stock options (e.g., 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. In periods when we report a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. In the fiscal year-to-date period ended March 30, 2018, we excluded stock awards of 2,429 stock options and 1,215 RSUs.

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 30, 2018		March 31, 2017		March 30, 2018			March 31, 2017
Numerator:
Net income/(loss) attributable to Dolby Laboratories, Inc.	$	70,631	$	50,590	$	(10,991	)	$	103,964

Denominator:
Weighted-average shares outstanding—basic	103,771		101,787		103,162			101,635
Potential common shares from options to purchase common stock	2,397		1,513		—			1,448
Potential common shares from restricted stock units	833		583		—			784
Weighted-average shares outstanding—diluted	107,001		103,883		103,162			103,867

Net income/(loss) per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.68	$	0.50	$	(0.11	)	$	1.02
Diluted	$	0.66	$	0.49	$	(0.11	)	$	1.00

Antidilutive awards excluded from calculation:
Stock options	1,276		1,819		2,429			1,222
Restricted stock units	3		2		1,215			8