Note 3. Earnings Per Share

The following table sets forth the computation of basic and diluted net income (loss) attributable to common stockholders per share (in millions, except per share data):



	Three Months Ended						Six Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
Numerator:
Net income	$	204.8		$	11.8		$	211.9		$	8.4
Less: Cumulative dividends on Series A Preferred Stock ^(a)	(0.3		)	(0.2		)	(0.5		)	(0.4		)
Net income attributable to common stockholders - basic	$	204.5		$	11.6		$	211.4		$	8.0

Net income attributable to common stockholders - diluted	$	204.8		$	11.8		$	211.9		$	8.0
Denominator:
Weighted-average number of common shares outstanding
Basic	62.2			60.3			61.9			60.1
Effect of dilutive securities from stock-based benefit plans	0.9			0.9			1.1			1.0
Effect of diluted securities from Series A Preferred Stock	1.5			1.5			1.5			—
Diluted shares attributable to common stockholders	64.6			62.7			64.5			61.1

Net income per share attributable to common stockholders:
Basic	$	3.29		$	0.19		$	3.42		$	0.13
Diluted	$	3.17		$	0.19		$	3.29		$	0.13

(a) Dividends on our redeemable convertible Series A Preferred Stock were declared during all periods presented. However, cumulative dividends are added back to net income in accordance with the assumed conversion under the if-converted method.

The dilutive effect of stock-based awards is reflected in diluted earnings per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair value of our common stock can result in a greater dilutive effect from potentially dilutive awards.

The dilutive effect of our Series A Preferred Stock is reflected in diluted earnings per share by the application of the if-converted method. The number of shares is increased for the assumed conversion of the instrument. Additionally, cumulative dividends are added back to net income. For the six months ended December 31, 2016, 1.5 million shares related to the potential conversion of the Series A Preferred Stock were excluded from the calculation of diluted shares available to the common stockholders because their inclusion would have been antidilutive.

In March 2017, we issued $450 million in aggregate principal amount of 0.25% Convertible Senior Notes due in 2024 (the “2024 Notes”). We have the ability and intent to settle the $450 million face value of the 2024 Notes in cash. Therefore, we use the treasury stock method for calculating the dilutive impact of the 2024 Notes. The 2024 Notes will have no impact to diluted earnings per share until the average price of our common stock exceeds the conversion price. Refer to “Note 9. Convertible Senior Notes” for further discussion.

For the three and six months ended December 30, 2017 and December 31, 2016, the number of shares related to our stock-based benefit plans that were excluded from the calculation of diluted shares was not material.