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Net Earnings Per Common Share
 6 Months Ended
Jul. 01, 2022
Earnings Per Share [Abstract]  
Net Earnings Per Common Share NET EARNINGS PER COMMON SHARE
Basic 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 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 July 1, 2022 and July 2, 2021, approximately 2.4 million and 193 thousand options to purchase shares, respectively, were excluded from the diluted EPS from continuing operations calculation and for the six-month periods ended July 1, 2022 and July 2, 2021, approximately 2.4 million and 132 thousand 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 dilutive for both the three and six-month periods ended July 1, 2022 and July 2, 2021, and as such 1.1 million and 6.0 million shares for the three and six-month periods ended July 1, 2022, respectively, and 11.0 million shares, for both the three and six-month periods ended July 2, 2021, underlying the MCPS Series A were included in the calculation of diluted EPS. The related MCPS Series A dividends of $20 million for the six-month period ended July 1, 2022 and $20 million and $40 million for the three and six-month periods ended July 2, 2021, respectively, were excluded from the calculation of net earnings for diluted EPS. On April 15, 2022, all outstanding shares of the MCPS Series A converted into 11.0 million shares of the Company’s common stock. There were no MCPS Series A dividends declared in the second quarter of 2022 prior to their conversion and the MCPS Series A were dilutive for all periods prior to the conversion. Refer to Note 15 for additional information about the MCPS Series A conversion.
The impact of the MCPS Series B calculated under the if-converted method was anti-dilutive for both the three and six-month periods ended July 1, 2022 and July 2, 2021, and as such 8.6 million shares, for both the three and six-month periods underlying the MCPS Series B were excluded from the calculation of diluted EPS and the related MCPS Series B dividends of $22 million and $21 million for the three-month periods, respectively, and $43 million and $42 million for the six-month periods, respectively, were included in the calculation of net earnings for diluted EPS.
Information related to the calculation of net earnings per common share from continuing operations is summarized as follows ($ and shares in millions, except per share amounts):
Three-Month Period EndedSix-Month Period Ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Numerator:
Net earnings from continuing operations
$1,680 $1,699 $3,405 $3,401 
MCPS dividends(22)(41)(63)(82)
Net earnings from continuing operations attributable to common stockholders for Basic EPS
1,658 1,658 3,342 3,319 
Adjustment for MCPS dividends for dilutive MCPS— 20 20 40 
Net earnings from continuing operations attributable to common stockholders after assumed conversions for Diluted EPS
$1,658 $1,678 $3,362 $3,359 
Denominator:
Weighted average common shares outstanding used in Basic EPS726.7 714.5 721.5 713.9 
Incremental common shares from:
Assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs8.2 10.5 9.3 10.6 
Assumed conversion of the convertible debentures— — — 0.1 
Weighted average MCPS converted shares1.1 11.0 6.0 11.0 
Weighted average common shares outstanding used in Diluted EPS736.0 736.0 736.8 735.6 
Basic EPS from continuing operations
$2.28 $2.32 $4.63 $4.65 
Diluted EPS from continuing operations
$2.25 $2.28 $4.56 $4.57