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Earnings Per Share
3 Months Ended
Sep. 28, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Note 3. Earnings Per Share
The following table sets forth the computation of basic and diluted net income attributable to common stockholders per share (in millions, except per share data):
 
Three Months Ended
 
September 28, 2019
 
September 29, 2018
Basic Earnings per Common Share
 

 
 

Net income
$
47.6

 
$
47.4

Less: Cumulative dividends on Series A Preferred Stock

 
(0.2
)
Less: Earnings allocated to Series A Preferred Stock

 
(1.1
)
Net income attributable to common stockholders - Basic
$
47.6

 
$
46.1

 
 
 
 
Weighted average common shares outstanding including Series A Preferred Stock
76.9

 
64.6

Less: Weighted average Series A Preferred Stock

 
(1.5
)
Basic weighted average common shares outstanding
76.9

 
63.1

Net income per share attributable to common stockholders - Basic
$
0.62

 
$
0.73

 
 
 
 
Diluted Earnings per Common Share
 
 
 
Net income attributable to common stockholders - Basic
$
47.6

 
$
46.1

Net income attributable to common stockholders - Diluted
$
47.6

 
$
46.1

 
 
 
 
Weighted average common shares outstanding for basic earnings per common share
76.9

 
63.1

Effect of dilutive securities from 2015 Equity Incentive Plan
0.7

 
0.8

Diluted weighted average common shares outstanding
77.6

 
63.9

Net income per share attributable to common stockholders - Diluted
$
0.61

 
$
0.72


Our Series A Preferred Stock was considered a participating security, meaning that it had the right to participate in undistributed earnings with our common stock. On November 2, 2018, the remaining 35,805 shares of our Series A Preferred Stock were converted into 1.5 million shares of our common stock. Refer to “Note 10. Non-Controlling Interest Redeemable Convertible Preferred Stock and Derivative Liability” for further discussion. Prior to conversion, the holders of our Series A Preferred Stock were entitled to share in dividends, on an as-converted basis, if the holders of our common stock were to receive dividends. Through the date of conversion, we used the two-class method to compute earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to common stockholders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding during the period. Diluted earnings per common share is calculated similar to basic earnings per common share except that it gives effect to all potentially dilutive common stock equivalents outstanding for the period, using the treasury stock method. Diluted earnings per common share is computed using the more dilutive of the treasury stock method or the if-converted method.
Potentially dilutive common shares result from the assumed exercise of outstanding stock options, assumed vesting of outstanding equity awards, assumed issuance of stock under the employee stock purchase plan, and assumed conversion of our outstanding $450 million in aggregate principal amount of 0.25% Convertible Notes due in 2024 (the “2024 Notes”), all using the treasury stock method. We have the ability and intent to settle the $450 million face value of the 2024 Notes in cash. Therefore, we use the treasury stock method for calculating the dilutive impact of the 2024 Notes. The 2024 Notes will have no impact on diluted earnings per share until the average price of our common stock over a 30-day period exceeds the conversion price of $60.62. Refer to “Note 11. Debt” for further discussion.
Anti-dilutive potential shares from the 2015 Equity Incentive Plan are excluded from the calculation of diluted earnings per share if their exercise price exceeded the average market price during the period or the share-based awards were determined to be
anti-dilutive based on applying the treasury stock method. We excluded 0.4 million and 0.3 million of anti-dilutive shares from the calculation of diluted earnings per share for the three months ended September 28, 2019 and September 29, 2018, respectively.