NET INCOME PER COMMON SHARE

12 Months Ended

Feb. 22, 2025

The Company calculates basic and diluted net income per Class A common share using the two-class method. The two-class method is an allocation formula that determines net income per Class A common share for each share of Class A common stock and Convertible Preferred Stock, a participating security, according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to Class A common shares and Convertible Preferred Stock based on their respective rights to receive dividends. The holders of Convertible Preferred Stock participated in cash dividends that the Company paid on its common stock to the extent that such cash dividends exceeded $206.25 million per fiscal year and shares of Convertible Preferred Stock remained outstanding as of the applicable record date to participate in such dividends. As of June 17, 2023, 100% of the originally issued Convertible Preferred Stock had been converted into Class A common stock and no shares of Convertible Preferred Stock are outstanding. In applying the two-class method to interim periods, the Company allocates income to its quarterly periods independently and discretely from its year-to-date and annual periods. Basic net income per Class A common share is computed by dividing net income allocated to Class A common stockholders by the weighted average number of Class A common shares outstanding for the period, including Class A common shares to be issued with no prior remaining contingencies prior to issuance. Diluted net income per Class A common share is computed based on the weighted average number of shares of Class A common stock outstanding during each period, plus potential Class A common shares considered outstanding during the period, as long as the inclusion of such awards is not antidilutive. Potential Class A common shares consist of unvested RSUs and RSAs and Convertible Preferred Stock, using the more dilutive of either the two-class method or as-converted stock method. PBRSUs and performance-based RSAs are considered dilutive when the related performance criterion has been met.

The components of basic and diluted net income per Class A common share were as follows (in millions, except per share data):


	Fiscal 2024		Fiscal 2023		Fiscal 2022
Basic net income per Class A common share
Net income	$	958.6	$	1,296.0	$	1,513.5
Special Dividend on Convertible Preferred Stock	—		—		(252.2)
Accrued dividends on Convertible Preferred Stock	—		(0.3)		(51.0)
Earnings allocated to Convertible Preferred Stock	—		(0.7)		—
Net income allocated to Class A common stockholders - Basic	$	958.6	$	1,295.0	$	1,210.3

Weighted average Class A common shares outstanding - Basic (1)	580.1		575.4		529.0

Basic net income per Class A common share	$	1.65	$	2.25	$	2.29

Diluted net income per Class A common share
Net income allocated to Class A common stockholders - Basic	$	958.6	$	1,295.0	$	1,210.3
Accrued dividends on Convertible Preferred Stock	—		—		—
Earnings allocated to Convertible Preferred Stock	—		—		—
Net income allocated to Class A common stockholders - Diluted	$	958.6	$	1,295.0	$	1,210.3

Weighted average Class A common shares outstanding - Basic (1)	580.1		575.4		529.0
Dilutive effect of:
Restricted stock units and awards	3.7		5.7		5.0
Convertible Preferred Stock (2)	—		—		—
Weighted average Class A common shares outstanding - Diluted (3)	583.8		581.1		534.0

Diluted net income per Class A common share	$	1.64	$	2.23	$	2.27

(1) Fiscal 2024, fiscal 2023 and fiscal 2022 include 2.3 million, 3.0 million and 2.8 million Class A common shares remaining to be issued, respectively.

(2) Reflects the number of shares of Convertible Preferred Stock issued, if converted into common stock for the period outstanding. For fiscal 2023 and fiscal 2022, 0.3 million and 42.7 million potential common shares outstanding related to Convertible Preferred Stock were antidilutive, respectively.

(3) The number of potential Class A common shares outstanding related to RSUs and RSAs that were antidilutive for fiscal 2024, fiscal 2023 and fiscal 2022 were not material.