Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.20.1
Earnings Per Share
 3 Months Ended
Mar. 28, 2020
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. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, the assumed issuance of common shares under the stock purchase plan, and the assumed exercise of warrants issued to purchase the Company’s common stock. 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
 
March 28,
2020
 
March 30,
2019
 
(In millions, except per share amounts)
Numerator
 
 
 
Net income for basic earnings per share
$
162

 
$
16

Effect of potentially dilutive shares:
 
 
 
        Interest expense related to the 2.125% Notes
4

 
—

Net income for diluted earnings per share
$
166

 
$
16

Denominator
 
 
 
Basic weighted average shares
1,170

 
1,044

Effect of potentially dilutive shares:
 
 
 
        Employee equity plans and warrants
23

 
50

        2.125% Notes
31

 
—

Diluted weighted average shares
1,224

 
1,094

Earnings per share:
 
 
 
Basic
$
0.14

 
$
0.01

Diluted
$
0.14

 
$
0.01


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