Net Income (Loss) Per Common Share

9 Months Ended

Mar. 31, 2023

The following table presents the computation of basic and diluted income (loss) per common share:


	Three Months Ended				Nine Months Ended
	March 31, 2023		April 1, 2022			March 31, 2023		April 1, 2022
	(in millions, except per share data)
Net income (loss)	$	(572)	$	25		$	(991)	$	1,199
Less: cumulative dividends on Preferred Stock	9		—			9		—

Net income (loss) attributable to common shareholders	$	(581)	$	25		$	(1,000)	$	1,199


Weighted average shares outstanding:
Basic	319		313			318		312
Employee stock options, RSUs, PSUs, and ESPP	—		3			—		4
Diluted	319		316			318		316
Income (loss) per common shares
Basic	$	(1.82)	$	0.08		$	(3.14)	$	3.84
Diluted	$	(1.82)	$	0.08		$	(3.14)	$	3.79
Anti-dilutive potential common shares excluded	15		5			15		4

The Company computes basic income (loss) per common share by dividing net income attributable to common shareholders and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed by using diluted net income attributable to common shareholders, the weighted average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the “if-converted” method based on the nature of the securities.

Basic income (loss) per share attributable to common shareholders is computed using (i) net income (loss) less (ii) dividends paid to holders of Preferred Shares less (iii) net income (loss) attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common shareholders is computed as (i) basic net income (loss) attributable to common shareholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The "if-converted" method is used to determine the dilutive impact for the Company's convertible Preferred Stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.

Potentially dilutive common shares include dilutive outstanding employee stock options, RSUs and PSUs, rights to purchase shares of common stock under the Company’s ESPP, shares issuable in connection with the 1.50% convertible notes due 2024, and the Preferred Shares. For the three and nine months ended March 31, 2023, the Company recorded a net loss and all shares subject to outstanding equity awards were excluded from the calculation of diluted shares for those periods because their impact would have been anti-dilutive. For the three and nine months ended and April 1, 2022, the Company excluded common shares subject to certain outstanding equity awards from the calculation of diluted shares because their impact would have been anti-dilutive based on the Company’s average stock price during the period.