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Net Earnings Per Common Share From Continuing Operations
 9 Months Ended
Oct. 01, 2021
Earnings Per Share [Abstract]  
Net Earnings Per Common Share From Continuing Operations NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONSBasic net earnings per common share from continuing operations (“EPS”) 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 accrued on the Company’s LYONs (prior to their redemption in January 22, 2021) 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 periods ended October 1, 2021 and October 2, 2020, no options to purchase shares were excluded from the diluted net EPS calculation. For the nine-month periods ended October 1, 2021 and October 2, 2020, approximately 88 thousand and 1.0 million options,
respectively, to purchase shares were excluded from the diluted EPS calculation, as the impact of their inclusion would have been anti-dilutive.
Basic and diluted EPS are computed independently for each quarter and year-to-date period, and each period involves the use of different weighted-average share count figures. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of prior quarterly EPS figures may not equal year-to-date EPS.
The impact of the MCPS Series A calculated under the if-converted method was anti-dilutive for the three-month period ended October 1, 2021, and as such 11.0 million shares underlying the MCPS Series A were excluded from the calculation of diluted EPS for the three-month period and the related MCPS Series A dividends of $19 million were included in the calculation of net earnings for diluted EPS for the period. The impact of the MCPS Series A calculated under the if-converted method was dilutive for the nine-month period ended October 1, 2021, and as such 11.0 million shares underlying the MCPS Series A were included in the calculation of diluted EPS for the nine-month period and the related MCPS Series A dividends of $59 million were excluded from the calculation of net earnings for diluted EPS for the period.
The impact of the MCPS Series B calculated under the if-converted method was anti-dilutive for the three and nine-month periods ended October 1, 2021, and as such 8.6 million shares underlying the MCPS Series B were excluded from the calculation of diluted EPS in both periods and the related MCPS Series B dividends of $22 million and $64 million were included in the calculation of net earnings for diluted EPS for the respective periods.
The impact of the MCPS Series A and MCPS Series B calculated under the if-converted method was anti-dilutive for the three and nine-month periods ended October 2, 2020, and as such 19.6 million and 16.3 million shares, respectively, underlying the MCPS Series A and MCPS Series B were excluded from the diluted EPS calculation and the related MCPS Series A and MCPS Series B dividends were included in the calculation of net earnings for diluted EPS for the three and nine-month periods ended October 2, 2020.
Information related to the calculation of net earnings per common share from continuing operations is summarized as follows ($ and shares in millions, except per share amounts):
Three-Month Period EndedNine-Month Period Ended
October 1, 2021October 2, 2020October 1, 2021October 2, 2020
Numerator:
Net earnings from continuing operations$1,158 $883 $4,559 $2,405 
MCPS dividends(41)(41)(123)(95)
Net earnings from continuing operations attributable to common stockholders for Basic EPS1,117 842 4,436 2,310 
Adjustment for interest on convertible debentures— — — 1 
Adjustment for MCPS dividends for dilutive MCPS— — 59 — 
Net earnings from continuing operations attributable to common stockholders after assumed conversions for Diluted EPS$1,117 $842 $4,495 $2,311 
Denominator:
Weighted average common shares outstanding used in Basic EPS715.1 710.9 714.3 704.4 
Incremental common shares from:
Assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs11.9 12.4 11.0 11.3 
Assumed conversion of the convertible debentures— 1.0 0.1 1.1 
Weighted average MCPS converted shares— — 11.0 — 
Weighted average common shares outstanding used in Diluted EPS727.0 724.3 736.4 716.8 
Basic EPS from continuing operations$1.56 $1.18 $6.21 $3.28 
Diluted EPS from continuing operations$1.54 $1.16 $6.10 $3.22