(Loss) Earnings Per Share

3 Months Ended

Apr. 03, 2020

(LOSS) EARNINGS PER SHARE

Basic (loss) earnings per share is calculated by dividing net (loss) income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company.

The Company’s issuance of shares of its common stock to Danaher as partial consideration for the transfer of the Dental business by Danaher to the Company on September 17, 2019, together with the 100 shares of the Company’s common stock previously held by Danaher, resulted in 127.9 million shares of the Company’s common stock being held by Danaher, which are being utilized for the calculation of both basic and diluted earnings per share for the three months ended March 29, 2019. In connection with the IPO, an additional 30.8 million shares were issued on September 20, 2019.

For periods prior to the Separation, the Company’s stock-based compensation expense includes expense for Danaher equity awards granted to certain of the Company’s employees. As these equity awards related to Danaher common stock, rather than common stock of the Company, the calculation of diluted earnings per share does not include the potential dilutive impact of these equity awards for periods prior to the Split-Off. At the time of the Split-Off, the equity awards held by certain employees to purchase Danaher shares were converted into equity awards to purchase the Company’s shares and the converted equity awards are included in the Company’s calculation of diluted earnings per share in periods where the Company has net income.

The table below presents the computation of basic and diluted (loss) earnings per share:



	Three Months Ended
	April 3, 2020			March 29, 2019
Numerator:
Net (loss) income	$	(17.2	)	$	37.9

Denominator:
Weighted-average common shares outstanding used in basic and diluted (loss) earnings per share	159.2			127.9

(Loss) earnings per share:
Basic and diluted	$	(0.11	)	$	0.30

Since the Company was in a net loss position for the three months ended April 3, 2020, no shares reserved for issuance upon exercise of stock options or vesting of restricted stock units were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive.