XML 25 R14.htm IDEA: XBRL DOCUMENT v3.24.4
Net Income Per Share Attributable to Common Stockholders
 9 Months Ended
Dec. 28, 2024
Net income Per-share Attributable to Common Stockholders [Abstract]  
Net Income Per Share Attributable to Common Stockholders

5. Net Income Per Share Attributable to Common Stockholders

 

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding.

 

Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and the conversion of our 5.00% Series A Mandatory Convertible Preferred Stock (the “MCPS”) to common shares.

 

We exclude outstanding stock options, stock awards and the MCPS from the calculations if the effect would be anti-dilutive. The dilutive effect of the MCPS is calculated using the if-converted method. The if-converted method assumes that these securities were converted to shares of common stock at the beginning of the reporting period to the extent that the effect is dilutive. If the effect is anti-dilutive, we calculate net income per share attributable to common stockholders by adjusting the numerator for the effect of the cumulative MCPS dividends for the respective period.

 

On October 15, 2024, each then-outstanding share of the MCPS converted into 0.4413 shares of the Company’s common stock. The conversion rate was based on a value for the common stock equal to the lower of (i) the average of the daily VWAPs in the 20-trading-day period through October 14, 2024 (the daily VWAP is the per share volume-weighted average price of the Common Stock on the New York Stock Exchange for a given trading day as reported by Bloomberg) or (ii) $226.63. Because the VWAP average for the 20 trading days through October 14 was $292.55, the $226.63 common stock value was utilized to produce the conversion rate of 0.4413 shares of common stock for each share of MCPS. This is known as the “Minimum Conversion Rate” in the Certificate of Designations defining the terms of the MCPS.

 

The dividend on the MCPS that accrued through the conversion date was paid on the conversion date to holders of record on October 1, 2024 and therefore was not factored into the conversion rate.

 

The Company issued 2,029,955 shares of common stock upon the conversion of the MCPS.

 

Because the MCPS is no longer outstanding, the Company will not pay dividends on the MCPS in the future. This will amount to a cash savings of $23.0 per year.

 

For the three months ended December 28, 2024, 51,783 employee stock options and 130 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. For the nine months ended December 28, 2024, 79,564 employee stock options and 12,605 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.

 

For the three months ended December 30, 2023, 106,247 employee stock options and no restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. For the nine months ended December 30, 2023, 141,829 employee stock options and 2,000 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.

 

The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per share attributable to common stockholders.

 

   Three Months Ended   Nine Months Ended 
   December 28,
2024		   December 30,
2023		   December 28,
2024		   December 30,
2023		 
                 
Net income   $57.9   $46.6   $173.5   $148.3 
Preferred stock dividends    1.0    5.8    12.4    17.3 
Net income attributable to common stockholders   $56.9   $40.8   $161.1   $131.0 
Denominator for basic net income per share attributable to common stockholders — weighted-average shares outstanding    31,041,126    28,924,073    29,740,170    28,885,453 
Effect of dilution due to employee stock awards    181,497    280,497    213,713    268,016 
Denominator for diluted net income per share attributable to common stockholders — weighted-average shares outstanding    31,222,623    29,204,570    29,953,883    29,153,469 
                     
Basic net income per share attributable to common stockholders   $1.83   $1.41   $5.42   $4.53 
                     
Diluted net income per share attributable to common stockholders   $1.82   $1.39   $5.38   $4.49