Earnings Per Share

9 Months Ended

Apr. 02, 2021

Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted share units and performance-based share units and shares to be purchased under the Company’s Employee Stock Purchase Plan. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company:


	For the Three Months Ended				For the Nine Months Ended
(In millions, except per share data)	April 2, 2021		April 3, 2020		April 2, 2021		April 3, 2020
Numerator:
Net income	$	329	$	320	$	832	$	838
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	233		261		246		263
Weighted-average effect of dilutive securities:
Employee equity award plans	4		2		3		3
Total shares for purpose of calculating diluted net income per share	237		263		249		266
Net income per share:
Basic	$	1.41	$	1.23	$	3.38	$	3.19
Diluted	1.39		1.22		3.34		3.15

The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income per share were not material for the three and nine months ended April 2, 2021 and April 3, 2020.