Earnings Per Share

12 Months Ended

Sep. 24, 2021

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 unvested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on 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 24, 2021		September 25, 2020		September 27, 2019
Numerator:
Net income attributable to Dolby Laboratories, Inc.		$	310,227	$	231,363	$	255,151

Denominator:
Weighted-average shares outstanding—basic		101,190		100,564		101,629
Potential common shares from options to purchase common stock		1,994		1,400		1,922
Potential common shares from restricted stock units		1,376		941		1,021
Potential common shares from employee stock purchase plan		62		39		—
Weighted-average shares outstanding—diluted		104,622		102,944		104,572

Net income per share attributable to Dolby Laboratories, Inc.:
Basic		$	3.07	$	2.30	$	2.51
Diluted		$	2.97	$	2.25	$	2.44

Antidilutive awards excluded from calculation:
Stock options		235		3,209		2,340
Restricted stock units		48		2		1
Employee stock purchase plan		2		1		—