Earnings Per Share

6 Months Ended

Apr. 01, 2022

. 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 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 Quarter Ended				Fiscal Year-To-Date Ended
	April 1, 2022		March 26, 2021		April 1, 2022		March 26, 2021
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	36,720	$	76,217	$	116,734	$	211,415

Denominator:
Weighted-average shares outstanding—basic	101,343		101,464		101,285		101,090
Potential common shares from options to purchase common stock	962		2,102		1,160		1,980
Potential common shares from restricted stock units	365		939		979		1,258
Potential common shares from employee stock purchase plan	37		76		53		86
Weighted-average shares outstanding—diluted	102,707		104,581		103,477		104,414

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.36	$	0.75	$	1.15	$	2.09
Diluted	$	0.36	$	0.73	$	1.13	$	2.02

Antidilutive awards excluded from calculation:
Stock options	635		283		507		159
Restricted stock units	2,376		2		920		47
Employee stock purchase plan	15		—		—		—