17. Earnings Per Common Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. The Company’s potential common shares include outstanding stock-based compensation awards and expected issuable shares under the employee stock purchase plan. In computing diluted earnings per common share, the average closing stock price for the period is used in determining the number of shares assumed to be purchased with the assumed proceeds under the treasury stock method. Potential common shares of 0.1 million for both the fiscal years ended June 28, 2025 and June 29, 2024 were not included in computing diluted earnings per common share because the effect would have been antidilutive. No potential common shares were considered antidilutive for the fiscal year ended July 1, 2023.

A reconciliation of the numerators and denominators for the basic and diluted earnings per common share computations is as follows:

(In millions, except per share amounts)

 

Fiscal Year Ended June 28, 2025

 

 

Fiscal Year Ended June 29, 2024

 

 

Fiscal Year Ended July 1, 2023

 

Numerator:

 

 

 

 

 

 

 

 

Net income

 

$

340.2

 

 

$

435.9

 

 

$

397.2

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

154.8

 

 

 

154.4

 

 

 

154.2

 

Dilutive effect of potential common shares

 

 

1.6

 

 

 

1.6

 

 

 

1.9

 

Weighted-average dilutive common shares outstanding

 

 

156.4

 

 

 

156.0

 

 

 

156.1

 

Basic earnings per common share

 

$

2.20

 

 

$

2.82

 

 

$

2.58

 

Diluted earnings per common share

 

$

2.18

 

 

$

2.79

 

 

$

2.54

 

Historical Timeline

Fiscal YearFiled
2025Aug 13, 2025Showing above
2024Aug 14, 2024
2023Aug 16, 2023
2022Aug 19, 2022
2021Aug 24, 2021
2020Aug 18, 2020
2019Aug 16, 2019
2018Aug 16, 2018
2017Aug 25, 2017
2016Aug 30, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.