Earnings Per Share

9 Months Ended

May 27, 2023

Earnings Per Share In the first quarter of Fiscal 2023, we adopted ASU 2020-06. 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 the resulting shares are included in the denominator of the calculation. In addition, interest charges, net of any income tax effects are added back to the numerator of the calculation.

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended				Nine Months Ended
(in millions, except per share data)	May 27, 2023		May 28, 2022		May 27, 2023		May 28, 2022
Earnings per share - basic
Net income	$	59.1	$	117.2	$	172.1	$	308.0
Weighted average common shares outstanding	30.4		32.4		30.4		32.9
Basic earnings per common share(1)	$	1.95	$	3.62	$	5.66	$	9.35

Earnings per share - diluted
Net income	$	59.1	$	117.2	$	172.1	$	308.0
Interest expense on convertible notes, net of tax	1.2		—		3.6		—
Diluted net income	$	60.3	$	117.2	$	175.7	$	308.0

Weighted average common shares outstanding	30.4		32.4		30.4		32.9
Dilutive impact of stock compensation awards	0.3		0.5		0.4		0.5
Dilutive impact of convertible notes	4.7		—		4.7		0.2
Weighted average common shares outstanding, assuming dilution	35.4		32.9		35.5		33.6

Anti-dilutive securities excluded from weighted average common shares outstanding, assuming dilution	0.1		0.2		0.1		0.2

Diluted earnings per common share(1)	$	1.71	$	3.57	$	4.95	$	9.18

(1) Earnings per share amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided.

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.