Earnings Per Share

9 Months Ended

Apr. 02, 2022

Note 3. Earnings Per Share

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


	Three Months Ended				Nine Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Numerator:
Net income - basic and diluted	$	26.0	$	225.5	$	164.2	$	375.8

Denominator:
Weighted average common shares outstanding - basic	71.0		75.8		72.0		75.6
Effect of dilutive securities from stock-based benefit plans	0.7		0.8		0.6		0.8
Shares issuable assuming conversion of the 2024 Notes	2.8		2.6		2.5		2.2
Weighted average common shares outstanding - diluted	74.5		79.2		75.1		78.6

Net income per share:
Basic	$	0.37	$	2.97	$	2.28	$	4.97
Diluted	$	0.35	$	2.85	$	2.19	$	4.78

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 and the 2028 Notes will have no impact on diluted earnings per share until the average price of our common stock exceeds the conversion price of $99.29 and $131.03, respectively.

•The potentially dilutive shares resulting from the 2024 Notes were included in the calculation of diluted income per share for the three and nine months ended April 2, 2022 and April 3, 2021, respectively, since the average price of our common stock exceeded the conversion price of $60.62 in all periods.

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 less than 0.1 million for each of the three and nine months ended April 2, 2022. Anti-dilutive shares excluded from the calculation of diluted earnings per share were less than 0.1 million and 0.5 million shares for the three and nine months ended April 3, 2021, respectively.