NET INCOME (LOSS) PER SHARE

12 Months Ended

Oct. 01, 2021

Basic net income (loss) per common share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities, which is computed by dividing net income (loss) by the sum of the weighted average number of common shares outstanding and dilutive common shares.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted income per common share is as follows:


	Fiscal Year
(In millions, except per share amounts)	2021		2020		2019
Net income (loss) attributable to Varex	$	17.4	$	(57.9)	$	15.5
Weighted average shares outstanding - basic	39.3		38.8		38.2
Dilutive effect of Convertible Senior Notes	0.6		—		—
Dilutive effect of share-based awards and other	0.4		—		0.4
Weighted average shares outstanding - diluted	40.3		38.8		38.6
Net income (loss) per share attributable to Varex - basic	$	0.44	$	(1.49)	$	0.41
Net income (loss) per share attributable to Varex - diluted	$	0.43	$	(1.49)	$	0.40
Anti-dilutive share-based awards, excluded	2.8		3.5		1.9

Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying stock options, unvested stock awards, purchase rights granted under the employee stock purchase plan, warrants and convertible notes using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share attributable to Varex when their effect is dilutive. Since we intend to settle in cash the principal outstanding under our 4.00% Convertible Senior Notes due in 2025, we apply the treasury stock method applied using our average share price during the period when calculating their potential dilutive effect, if any. Furthermore, in connection with the offerings of our notes, we entered into

convertible note hedges and warrants (see Note 10. Borrowings). However, our convertible note hedges are not included when calculating potentially dilutive shares since their effect is always anti-dilutive. Warrants, which have a strike price above our average share price during the period, were out of the money and were not included in the tables above. Because the Company incurred a net loss for fiscal year 2020, none of the potentially dilutive common shares were included in the diluted share calculation for that period as they would have been anti-dilutive.