Earnings Per Share (Tables)

12 Months Ended

Jan. 01, 2022

Schedule of Computation of Basic and Diluted Earnings Per Share

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


	2021		2020		2019
Numerator:
Net income (loss)	$	164	$	(226)	$	385
Less: Series A Preferred Stock dividends (1)	(43)		(28)		—
Net income (loss) available to common shareholders	$	121	$	(254)	$	385
Denominator:
Weighted-average common shares outstanding	222		220		218
Effect of dilutive share-based awards	3		—		2
Effect of dilutive underlying shares of the Series A Preferred Stock (2)	—		—		—
Weighted-average dilutive shares outstanding	225		220		220
Net income (loss) per share:
Basic	$	0.55	$	(1.15)	$	1.77
Diluted	$	0.54	$	(1.15)	$	1.75

(1) As discussed in Note 14 Convertible Preferred Stock, Series A Preferred Stock dividends for fiscal year 2020 and the first quarter of 2021 were paid-in-kind in the form of shares of Series A Preferred Stock. Series A Preferred Stock dividends for the remaining quarters of fiscal year 2021 were paid in cash.

(2) The Company applies the if-converted method to calculate the dilution impact of the Series A Preferred Stock, if dilutive in the period. Under the if-converted method, the Series A 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 Series A Preferred Stock outstanding and therefore no Series A convertible preferred stock dividend.