Earnings Per Share (Tables)

6 Months Ended

Jul. 03, 2021

Schedule of Computation of Basic and Diluted EPS

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


	13 Weeks Ended				26 Weeks Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator:
Net income (loss)	$	55	$	(92)	$	31	$	(224)
Less: Series A convertible preferred stock dividends (1)	(9)		(5)		(24)		(5)
Net income (loss) available to common shareholders	$	46	$	(97)	$	7	$	(229)


Denominator:
Weighted-average common shares outstanding—basic	222		220		221		219
Effect of dilutive share-based awards	3		—		4		—
Effect of dilutive underlying shares of the Series A convertible preferred stock (2)	—		—		—		—
Weighted-average common shares outstanding—diluted	225		220		225		219
Net income (loss) per share
Basic	$	0.21	$	(0.44)	$	0.03	$	(1.05)
Diluted	$	0.20	$	(0.44)	$	0.03	$	(1.05)

(1) Preferred stock dividends for the first quarter of 2021 were paid in kind on March 31, 2021. Preferred stock dividends for the second quarter of 2021 were paid in cash on June 30, 2021.

(2) The Company applies the if-converted method to calculate the dilution impact of the Series A convertible preferred stock, if dilutive in the period. Under the if-converted method, the Series A convertible preferred stock are converted to common shares for inclusion in the calculation of the weighted-average common shares outstanding—diluted. Once converted, there would be no preferred stock outstanding and therefore no preferred stock dividend. For the 13 weeks and 26 weeks ended July 3, 2021 and June 27, 2020, the effect of the Series A convertible preferred stock was excluded, as the inclusion of the incremental shares would be anti-dilutive.