Earnings Per Share

6 Months Ended

Mar. 27, 2020

. 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
	March 26, 2021		March 27, 2020		March 26, 2021		March 27, 2020
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	76,217	$	88,496	$	211,415	$	137,249

Denominator:
Weighted-average shares outstanding—basic	101,464		100,854		101,090		100,595
Potential common shares from options to purchase common stock	2,102		1,471		1,980		1,591
Potential common shares from restricted stock units	939		408		1,258		905
Potential common shares from employee stock purchase plan	76		40		86		42
Weighted-average shares outstanding—diluted	104,581		102,773		104,414		103,133

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.75	$	0.88	$	2.09	$	1.36
Diluted	$	0.73	$	0.86	$	2.02	$	1.33

Antidilutive awards excluded from calculation:
Stock options	283		3,446		159		3,035
Restricted stock units	2		72		47		40