Earnings Per Share

9 Months Ended

Jun. 30, 2023

Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period.

Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS.

Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and unvested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on EPS.

The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts):


	Fiscal Quarter Ended				Fiscal Year-To-Date Ended
	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Numerator:
Net income attributable to Dolby Laboratories, Inc.	$	16,399	$	39,597	$	191,470	$	156,331

Denominator:
Weighted-average shares outstanding—basic	95,658		100,213		95,794		100,936
Potential common shares from options to purchase common stock	847		779		746		1,037
Potential common shares from restricted stock units	896		409		986		916
Potential common shares from employee stock purchase plan	58		73		62		104
Weighted-average shares outstanding—diluted	97,459		101,474		97,588		102,993

Net income per share attributable to Dolby Laboratories, Inc.:
Basic	$	0.17	$	0.40	$	2.00	$	1.55
Diluted	$	0.17	$	0.39	$	1.96	$	1.52

Antidilutive awards excluded from calculation:
Stock options	997		756		907		552
Restricted stock units	5		2,304		142		1,088
Employee stock purchase plan	5		—		2		—