Earnings Per Share

12 Months Ended

Jul. 03, 2021

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):


	Years Ended
	July 3, 2021		June 27, 2020		June 29, 2019
Basic Earnings per Common Share
Net income (loss)	$	397.3	$	135.5	$	(36.4)
Less: Cumulative dividends on Series A Preferred Stock	—		—		(0.3)

Less: Earnings allocated to Series A Preferred Stock	—		—		(1.2)
Net income (loss) attributable to common stockholders - Basic	$	397.3	$	135.5	$	(37.9)



Basic weighted average common shares outstanding	75.4		75.9		70.7
Net income (loss) per share attributable to common stockholders - Basic	$	5.27	$	1.79	$	(0.54)

Diluted Earnings per Common Share
Net income (loss) attributable to common stockholders - Diluted	$	397.3	$	135.5	$	(37.9)





Weighted average common shares outstanding for basic earnings per common share	75.4		75.9		70.7
Effect of dilutive securities from 2015 Equity Incentive Plan	0.8		0.8		—
Shares issuable assuming conversion of the 2024 Notes	2.2		0.9		—
Diluted weighted average common shares outstanding	78.4		77.6		70.7
Net income (loss) per share attributable to common stockholders:
Basic	$	5.27	$	1.79	$	(0.54)
Diluted	$	5.07	$	1.75	$	(0.54)

For the year ended June 29, 2019, our diluted loss per share attributable to common stockholders is the same as basic loss per share as we are in net loss position.

Our Series A Preferred Stock was considered a participating security, meaning that it had the right to participate in undistributed earnings with our common stock. On November 2, 2018, the remaining 35,805 shares of our Series A Preferred Stock were converted into 1.5 million shares of our common stock. Refer to “Note 11. Non-Controlling Interest Redeemable Convertible Preferred Stock and Derivative Liability” for further discussion. Prior to conversion, the holders of our Series A Preferred Stock were entitled to share in dividends, on an as-converted basis, if the holders of our common stock were to receive dividends. Through the date of conversion, we used the two-class method to compute earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to common stockholders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding during the period. Diluted earnings per common share is calculated similar to basic earnings per common share except that it gives effect to all potentially dilutive common stock equivalents outstanding for the period, using the treasury stock method. Diluted earnings per common share is computed using the more dilutive of the treasury stock method or the if-converted method.

Potentially dilutive common shares result from the assumed exercise of outstanding stock options, assumed vesting of outstanding equity awards, assumed issuance of stock under the employee stock purchase plan, and assumed conversion of our outstanding convertible notes, all using the treasury stock method.

We have the ability and intent to settle the face value of our convertible notes in cash. Therefore, we use the treasury stock method for calculating the dilutive impact of the convertible notes. The 2026 Notes (as defined in “Note 12. Debt") does not impact diluted earnings per share until the average price of our common stock exceeds the conversion price of $99.29. The potentially dilutive shares resulting from the 2024 Notes were included in the calculation of diluted income per share for the

year ended July 3, 2021 and June 27, 2020 since the average price of our common stock exceeded the conversion price of $60.62. Refer to “Note 12. Debt” for further discussion of convertible notes.

Anti-dilutive potential shares are excluded from the calculation of diluted earnings per share if their exercise price exceeded the average market price during the period or the share-based awards were determined to be anti-dilutive based on applying the treasury stock method. Anti-dilutive shares excluded from the calculation of diluted earnings per share were 0.5 million and 0.4 million for the year ended July 3, 2021 and June 27, 2020, respectively. During the year ended June 29, 2019, 0.6 million of potentially dilutive securities were excluded from the computation of diluted earnings per share due to net loss generated for the period, since the effect would have been anti-dilutive.