Earnings Per Share

3 Months Ended

Nov. 26, 2022

In the first quarter of Fiscal 2023, we adopted ASU 2020-06 using the modified retrospective approach. Prior to adoption, we utilized the treasury stock method for calculating the dilutive impact of our Convertible Notes. Upon adoption, we prospectively utilized the if-converted method to calculate the dilutive impact of our Convertible Notes. Under the if-converted method, the Convertible Notes are assumed to be converted into common stock at the beginning of the reporting period, and interest charges are added back to the numerator as the principal amount of the Convertible Notes is not required to be paid in cash.

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended
(in millions, except per share data)	November 26, 2022		November 27, 2021
Earnings per share - basic
Net income	$	60.2	$	99.6
Weighted average common shares outstanding	30.4		33.3
Basic earnings per common share	$	1.98	$	2.99

Earnings per share - diluted
Net income	$	60.2	$	99.6
Interest expense on convertible notes, net of tax	1.2		—
Diluted net income	$	61.4	$	99.6

Weighted average common shares outstanding	30.4		33.3
Dilutive impact of stock compensation awards	0.4		0.6
Dilutive impact of convertible notes	4.7		0.5
Weighted average common shares outstanding, assuming dilution	35.5		34.4

Anti-dilutive securities excluded from weighted average common shares outstanding, assuming dilution	0.1		0.1

Diluted earnings per common share	$	1.73	$	2.90

For both periods presented, the dilutive effect of stock compensation awards was determined using the treasury stock method. Under the treasury stock method, shares associated with certain anti-dilutive securities have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution.