Net Income Per Share

6 Months Ended

Sep. 30, 2022

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. Dilutive potentially issuable common shares include the dilutive effect of the shares underlying our employee equity awards and convertible debt until its extinguishment on August 15, 2022.

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

	Three Months Ended				Six Months Ended
(In millions, except per share amounts)	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Net income (loss)	$	69	$	333	$	269	$	514
Net income (loss) per share - basic	$	0.12	$	0.57	$	0.46	$	0.88
Net income (loss) per share - diluted	$	0.12	$	0.56	$	0.45	$	0.87
Weighted-average shares outstanding - basic	590		582		583		581
Dilutive potentially issuable shares:
Convertible debt	2		7		12		7
Employee equity awards	3		2		4		3
Weighted-average shares outstanding - diluted	595		591		599		591
Anti-dilutive shares excluded from diluted net income per share calculation:
Employee equity awards	—		1		—		1
Total	—		1		—		1

Upon adoption of ASU 2020-06 under the modified retrospective method, we are required to apply the if-converted method to our calculation of diluted earnings per share. For the three and six months ended September 30, 2022, we adjust for the dilutive effect of the maximum number of potential shares to be issued upon settlement of our outstanding convertible debt instruments. Prior period earnings per share amounts are not restated under the modified retrospective method. For the three and six months ended October 1, 2021, the dilutive effect of our debt instruments is calculated using the treasury stock method, under which our convertible debt instruments generally had 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 initial adoption of ASU 2020-06 had a $0.01 impact on dilutive earnings per share, with the dilutive shares underlying the convertible debt increasing by 18 million shares.