Earnings Per Share

9 Months Ended

Jun. 28, 2019

. 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, 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.

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, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	67,285	$	39,574	$	204,534	$	211,233

Denominator:
Weighted-average shares outstanding—basic	100,593		101,218		100,594		102,012
Potential common shares from options to purchase common stock	1,100		1,829		1,425		2,006
Potential common shares from restricted stock units	360		670		855		1,007
Potential common shares from ESPP	22		—		38		—
Weighted-average shares outstanding—diluted	102,075		103,717		102,912		105,025

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.67	$	0.39	$	2.03	$	2.07
Diluted	$	0.66	$	0.38	$	1.99	$	2.01

Antidilutive awards excluded from calculation:
Stock options	3,439		2,610		3,149		2,277
Restricted stock units	111		37		13		1
ESPP	8		—		1		—