Basic and Diluted Net Income Per Share

9 Months Ended

Jul. 03, 2021

Basic and Diluted Net Income Per Share [Abstract]

13. Basic and Diluted Net Income Per Share

Basic net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method. For purposes of this calculation, stock options are considered to be common stock equivalents and are only included in the calculation of diluted net income per share when their effect is dilutive. No shares were excluded from the diluted net income per share calculation for the quarterly and three quarterly periods ended July 3, 2021. For the quarterly and three quarterly periods ended June 27, 2020, 7.1 million and 7.1 million shares, respectively, were excluded from the diluted net income per share calculation as their effect would be anti-dilutive.

The following tables provide a reconciliation of the numerator and denominator of the basic and diluted net income per share calculations.

	Quarterly Period Ended				Three Quarterly Periods Ended
(in millions, except per share amounts)	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator
Consolidated net income	$	194	$	191	$	505	$	364
Denominator
Weighted average common shares outstanding - basic		135.1		132.5		134.3		132.4
Dilutive shares		3.4		1.7		3.4		1.9
Weighted average common and common equivalent shares outstanding - diluted		138.5		134.2		137.7		134.3

Per common share income
Basic	$	1.44	$	1.44	$	3.76	$	2.75
Diluted	$	1.40	$	1.42	$	3.67	$	2.71