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 and vesting of outstanding RSUs.

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 Year Ended
	September 28, 2018		September 29, 2017		September 30, 2016
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	122,246	$	201,802	$	185,860

Denominator:
Weighted-average shares outstanding—basic	103,377		101,784		100,717
Potential common shares from options to purchase common stock	2,370		1,098		1,013
Potential common shares from restricted stock units	1,231		404		694
Weighted-average shares outstanding—diluted	106,978		103,286		102,424

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	1.18	$	1.98	$	1.85
Diluted	$	1.14	$	1.95	$	1.81

Antidilutive awards excluded from calculation:
Stock options	1,043		160		2,971
Restricted stock units	6		—		30