XML 34 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Net Earnings Per Share
 6 Months Ended
Jun. 28, 2019
Earnings Per Share [Abstract]  
Net Earnings Per Share
NOTE 13. NET EARNINGS PER SHARE

Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact. There were an insignificant amount of options excluded from the diluted EPS calculation for the three months ended June 28, 2019 and 1.5 million anti-dilutive options excluded from the diluted EPS calculation for the three months ended June 29, 2018. There were 1.7 million and 1.5 million anti-dilutive options excluded for the six months ended June 28, 2019 and June 29, 2018, respectively.
As described in Note 6, upon conversion of the Convertible Notes, holders will receive cash, shares of our common stock, or a combination thereof, at our election. Our intention is to settle such conversions through cash up to the principal amount of the Convertible Notes and, if applicable, through shares of our common stock for conversion value, if any, in excess of the principal amount of the Convertible Notes. We believe we have the ability to settle these obligations as intended, and therefore we have accounted for the conversion features under the treasury stock method in our calculation of EPS. Because the fair value of our common stock is below the conversion price, the Convertible Notes had no impact on our earnings per share for the three and six months ended June 28, 2019.
The impact of our MCPS calculated under the if-converted method was anti-dilutive, and as such 17.5 million shares were excluded from the diluted EPS calculation for the three and six months ended June 28, 2019.
Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
June 28, 2019
 
June 29, 2018
 
June 28, 2019
 
June 29, 2018
Numerator
 
 
 
 
 
 
 
Net earnings from continuing operations
$
175.3

 
$
250.2

 
$
339.3

 
$
464.2

Mandatory convertible preferred stock cumulative dividends
(17.2
)
 
(0.2
)
 
(34.5
)
 
(0.2
)
Net earnings attributable to common stockholders from continuing operations
$
158.1

 
$
250.0

 
$
304.8

 
$
464.0

 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted average common shares outstanding used in basic earnings per share
335.6

 
349.2

 
335.4

 
348.9

Incremental common shares from:
 
 
 
 
 
 
 
Assumed exercise of dilutive options and vesting of dilutive Stock Awards
4.1

 
5.6

 
4.4

 
5.7

Assumed conversion of outstanding mandatory convertible preferred stock
—

 
0.2

 
—

 
0.1

Weighted average common shares outstanding used in diluted earnings per share
339.7

 
355.0

 
339.8

 
354.7

 
 
 
 
 
 
 
 
Net earnings from continuing operations per common share - Basic
$
0.47

 
$
0.72

 
$
0.91

 
$
1.33

Net earnings from continuing operations per common share - Diluted
$
0.47

 
$
0.70

 
$
0.90

 
$
1.31


We declared and paid cash dividends per common share and per MCPS during the periods presented as follows:
 
Dividend Per
Common Share
 
Amount
($ in millions)
 
Dividend per MCPS
 
Amount
($ in millions)
2019:
 
 
 
 
 
 
 
First quarter
$
0.07

 
$
23.4

 
$
12.50

 
$
17.3

Second quarter
0.07

 
23.4

 
12.50

 
17.2

Total
$
0.14

 
$
46.8

 
$
25.00

 
$
34.5

 
 
 
 
 
 
 
 
2018:
 
 
 
 
 
 
 
First quarter
$
0.07

 
$
24.3

 
$
—

 
$
—

Second quarter
0.07

 
24.4

 
—

 
—

Total
$
0.14

 
$
48.7

 
$
—

 
$
—