Earnings Per Share

3 Months Ended

Apr. 03, 2021

EARNINGS PER SHARE

The Company computes EPS in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding.

Diluted EPS is computed using the weighted average number of shares of common stock, plus the effect of potentially dilutive securities. The Company applies the treasury method to calculate the dilution impact of share-based awards—stock options, non-vested restricted shares with forfeitable dividend rights, restricted stock units, and employee stock purchase plan deferrals. The Company applies the if-converted method to calculate the dilution impact of the Series A convertible preferred stock. For the 13 weeks ended April 3, 2021 and March 28, 2020, share-based awards representing 9 million and 10 million underlying common shares, respectively, were not included in the computation because the effect would have been anti-dilutive. For the 13 weeks ended April 3, 2021, convertible preferred stock representing 24 million of underlying common shares were not included in the computation because the effect would have been anti-dilutive.

The following table sets forth the computation of basic and diluted EPS:


	13 Weeks Ended
		April 3, 2021		March 28, 2020
Numerator:
Net loss		$	(24)	$	(132)
Series A convertible preferred stock dividends (1)		15		—
Net loss available to common shareholders		$	(39)	$	(132)
Denominator:
Weighted-average common shares outstanding		221		219
Effect of dilutive securities		—		—
Effect of dilutive underlying shares of the Series A convertible preferred stock		—		—
Weighted-average dilutive shares outstanding		221		219
Net loss per share
Basic		$	(0.18)	$	(0.60)
Diluted		$	(0.18)	$	(0.60)

(1) Preferred stock dividends for the first quarter of 2021 were declared on March 23, 2021 and were paid in kind on March 31, 2021.