Earnings Per Share

9 Months Ended

Jun. 25, 2021

. 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 25, 2021		June 26, 2020		June 25, 2021		June 26, 2020
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	54,621	$	67,285	$	266,036	$	204,534

Denominator:
Weighted-average shares outstanding—basic	101,351		100,593		101,177		100,594
Potential common shares from options to purchase common stock	2,062		1,100		2,033		1,425
Potential common shares from restricted stock units	1,169		360		1,319		855
Potential common shares from employee stock purchase plan	51		22		78		38
Weighted-average shares outstanding—diluted	104,633		102,075		104,607		102,912

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.54	$	0.67	$	2.63	$	2.03
Diluted	$	0.52	$	0.66	$	2.54	$	1.99

Antidilutive awards excluded from calculation:
Stock options	283		3,439		200		3,149
Restricted stock units	—		111		12		13
Employee stock purchase plan	1		8		2		1