Net Earnings Per Common Share From Continuing Operations

6 Months Ended

Jul. 03, 2020

Net Earnings Per Common Share From Continuing Operations

NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS

Basic net earnings per common share (“EPS”) from continuing operations is calculated by taking net earnings from continuing operations less the MCPS dividends divided by the weighted average number of common shares outstanding for the applicable period. Diluted net EPS from continuing operations is computed by taking net earnings from continuing operations plus the interest on the Company’s LYONs less the MCPS dividends divided by the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased with the proceeds from the issuance of the potentially dilutive shares. For the three-month period ended July 3, 2020, no options to purchase shares were excluded from the diluted EPS calculation. For the six-month period ended July 3, 2020, approximately 1 million options to purchase shares were not included in the diluted EPS calculation as the impact of their inclusion would have been anti-dilutive. For the three and the six-month periods ended June 28, 2019, no options to purchase shares were excluded from the diluted EPS calculation. Basic and diluted EPS are computed independently for each quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of prior quarter-to-date EPS figures may not equal year-to-date EPS.

The impact of the MCPS Shares calculated under the if-converted method was anti-dilutive, and as such 17 million shares and

15 million shares for the three and six-month periods ended July 3, 2020, respectively, and 12 million shares and 8 million shares for the three and six-month periods ended June 28, 2019, respectively, underlying the MCPS Shares were excluded from the diluted EPS calculation.

Information related to the calculation of net earnings from continuing operations per common share is summarized as follows ($ and shares in millions, except per share amounts):



	Three-Month Period Ended						Six-Month Period Ended
	July 3, 2020			June 28, 2019			July 3, 2020			June 28, 2019
Numerator:
Net earnings from continuing operations	$	927.3		$	676.4		$	1,522.4		$	1,008.7
MCPS dividends	(34.6		)	(22.7		)	(54.2		)	(29.2		)
Net earnings from continuing operations attributable to common stockholders for Basic EPS	892.7			653.7			1,468.2			979.5
Adjustment for interest on convertible debentures	0.3			0.5			0.6			1.0
Net earnings from continuing operations attributable to common stockholders after assumed conversions for Diluted EPS	$	893.0		$	654.2		$	1,468.8		$	980.5

Denominator:
Weighted average common shares outstanding used in Basic EPS	705.1			717.6			701.1			712.6
Incremental common shares from:
Assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs	12.0			8.8			10.8			8.8
Assumed conversion of the convertible debentures	1.1			1.5			1.2			1.8
Weighted average common shares outstanding used in Diluted EPS	718.2			727.9			713.1			723.2

Basic EPS from continuing operations	$	1.27		$	0.91		$	2.09		$	1.37
Diluted EPS from continuing operations	$	1.24		$	0.90		$	2.06		$	1.36