Net Income Per Share

3 Months Ended

Jul. 03, 2020

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potentially issuable common shares outstanding during the period using the treasury stock method. Dilutive potentially issuable common shares includes the dilutive effect of the shares underlying convertible debt and employee equity awards.

The components of basic and diluted net income (loss) per share are as follows:

	Three Months Ended
(In millions, except per share amounts)	July 3, 2020		July 5, 2019
Income from continuing operations	$	149	$	38
Loss from discontinued operations	(31)		(12)
Net income	$	118	$	26
Income (loss) per share - basic:
Continuing operations	$	0.25	$	0.06
Discontinued operations	$	(0.05)	$	(0.02)
Net income per share - basic	$	0.20	$	0.04
Income (loss) per share - diluted:
Continuing operations	$	0.24	$	0.06
Discontinued operations	$	(0.05)	$	(0.02)
Net income per share - diluted	$	0.19	$	0.04
Weighted-average shares outstanding - basic	590		619
Dilutive potentially issuable shares:
Convertible debt	20		10
Employee equity awards	4		13
Weighted-average shares outstanding - diluted	614		642
Anti-dilutive shares excluded from diluted net income per share calculation:
Employee equity awards	1		5

Under the treasury stock method, our convertible debt instruments will generally have a dilutive impact on net income per share when our average stock price for the period exceeds the conversion prices for the convertible debt instruments. The conversion price of each convertible debt applicable in the periods presented is as follows:

	Three Months Ended
	July 3, 2020		July 5, 2019
2.5% Convertible Senior Notes due April 1, 2022	N/A		$	16.77
2.0% Convertible Senior Notes due August 15, 2022	$	10.23	$	20.41
New 2.5% Convertible Senior Notes due April 1, 2022	$	16.77	N/A
New 2.0% Convertible Senior Notes due August 15, 2022	$	20.41	N/A