Earnings Per Share (Tables)

9 Months Ended

Oct. 01, 2022

Schedule of Computation of Basic and Diluted EPS

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


	13 Weeks Ended				39 Weeks Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Numerator:
Net Income	$	109	$	64	$	172	$	95
Less: Series A Preferred Stock Dividends (1)	(9)		(9)		(27)		(33)
Net income available to common shareholders	$	100	$	55	$	145	$	62
Denominator:
Weighted-average common shares outstanding—basic	225		222		224		222
Effect of dilutive share-based awards	1		3		2		3
Effect of dilutive underlying shares of the Series A Preferred Stock (2)	25		—		—		—
Weighted-average common shares outstanding—diluted	251		225		226		225
Net income per share
Basic	$	0.44	$	0.25	$	0.65	$	0.28
Diluted	$	0.43	$	0.24	$	0.64	$	0.28

(1) Series A Preferred Stock dividends for the first quarter of 2021 were paid in kind on March 31, 2021 in the form of shares of Series A Preferred Stock. Series A Preferred Stock dividends for the second and third quarter of 2021 were paid in cash on June 30, 2021 and September 28, 2021, respectively. Preferred Stock dividends for the first, second and third quarters of 2022 were paid in cash on March 31, 2022, June 30, 2022, and September 30, 2022, respectively.

(2) Under the if-converted method, outstanding shares of 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 preferred stock outstanding and therefore no Series A Preferred Stock dividend.