Net Income (Loss) Per Common Share

3 Months Ended

Sep. 29, 2023

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


	Three Months Ended
	September 29, 2023		September 30, 2022
	(in millions, except per share data)
Net income (loss)	$	(685)	$	27
Less: cumulative dividends on Preferred Stock	15		—

Net income (loss) attributable to common shareholders	$	(700)	$	27


Weighted average shares outstanding:
Basic	323		316
Employee stock options, RSUs, PSUs, and ESPP	—		3
Diluted	323		319
Net income (loss) per common share
Basic	$	(2.17)	$	0.09
Diluted	$	(2.17)	$	0.08
Anti-dilutive potential common shares excluded	15		8

Basic net 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 1.50% convertible notes and the Preferred Shares. 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 months ended September 29, 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 months ended September 30, 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.