Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.19.2
Earnings Per Share
 6 Months Ended
Jun. 29, 2019
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic earnings per share is computed based on the weighted average number of common shares outstanding.
Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus potentially dilutive shares outstanding during the period using the average market price for the respective period. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, and the assumed exercise of the warrant under the Warrant Agreement with WCH prior to the exercise of the warrant on February 13, 2019. Potentially dilutive shares issuable upon conversion of the 2.125% Notes are calculated using the if-converted method.
The following table sets forth the components of basic and diluted earnings per share:
 
Three Months Ended
 
Six Months Ended
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
 
(In millions, except per share amounts)
Numerator
 
 
 
 
 
 
 
Net income
$
35

 
$
116

 
$
51

 
$
197

Effect of assumed conversion of Convertible 2.125% Notes:
 
 
 
 
 
 
 
              Interest expense related to Convertible 2.125% Notes
—

 
11

 
—

 
—

Numerator for diluted earnings per share
$
35

 
$
127

 
$
51

 
$
197

Denominator
 
 
 
 
 
 
 
Basic weighted-average shares
1,084

 
972

 
1,064

 
970

Effect of potentially dilutive shares:
 
 
 
 
 
 
 
              Employee equity incentive plans and warrants
25

 
74

 
38

 
73

         Convertible 2.125% Notes
—

 
101

 
—

 
—

Diluted weighted-average shares
1,109

 
1,147

 
1,102

 
1,043

Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.03

 
$
0.12

 
$
0.05

 
$
0.20

Diluted
$
0.03

 
$
0.11

 
$
0.05

 
$
0.19


Potential shares from employee equity incentive plans and the conversion of the 2.125% Notes totaling 102 million for the three months ended June 29, 2019 were not included in the earnings per share calculation because their inclusion would have been anti-dilutive. Potential shares from employee equity incentive plans totaling 2 million for the three months ended June 30, 2018 were not included in the earnings per share calculation because their inclusion would have been anti-dilutive.
Potential shares from employee equity incentive plans and the conversion of the 2.125% Notes totaling 103 million for the six months ended June 29, 2019 and June 30, 2018, respectively, were not included in the earnings per share calculation because their inclusion would have been anti-dilutive.