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Net Earnings Per Common Share From Continuing Operations | 6 Months Ended
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Jul. 02, 2021
Earnings Per Share [Abstract] |
Net Earnings Per Common Share From Continuing Operations | NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS 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 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 period ended July 2, 2021, 193 thousand options to purchase shares were excluded from the diluted net EPS calculation and for the six-month periods ended July 2, 2021 and July 3, 2020, approxim ately 132 thousand a nd 1 million options, respectively, to purchase shares were excluded from the diluted EPS calculation, as the impact of their inclusion would have been anti-dilutive. For the three-month period ended July 3, 2020, no options to purchase shares were excluded from the diluted net EPS calculation. 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 quarter-to-date EPS figures may not equal year-to-date EPS. The impact of the MCPS Series A calculated under the if-converted meth od was dilutive for the three and six-month periods ended July 2, 2021, and as such 11.0 million shares underlying the MCPS Series A were included in the calculation of diluted EPS for both periods and the related MCPS Series A dividends of $20 million and $40 million were exc luded from the calculation of net earnings for diluted EPS for the respective periods. The impact of the MCPS Series B calculated under the if-converted method was anti-dilutive for the three and six-month periods ended July 2, 2021, and as such 8.6 million shares underlying the MCPS Series B were excluded in the calculation of diluted EPS in both periods and the related MCPS Series B dividends of $21 million and $42 million were included in the calculation of net earnings for diluted EPS for the respective periods. The impact of the MCPS Series A and MCPS Series B calculated under the if-converted method was anti-dilutive for the three and six-month periods ended July 3, 2020, and as such 16.8 million and 14.6 million shares, respectively, underlying the MCPS Series A and MCPS Series B were excluded from the diluted EPS calculation and the related MCPS Series A and MCPS Series B dividends were included in the calculation of net earnings for diluted EPS from continuing operations for the three and six-month periods ended July 3, 2020. Information related to the calculation of net earnings per common share from continuing operations is summarized as follows ($ and shares in millions, except per share amounts):
| Three-Month Period Ended |  | Six-Month Period Ended
| July 2, 2021 |  | July 3, 2020 |  | July 2, 2021 |  | July 3, 2020
Numerator: |  |  |  |  |  |  |
Net earnings from continuing operations | $ | 1,699 |  |  | $ | 927 |  |  | $ | 3,401 |  |  | $ | 1,522 |
MCPS dividends | (41) |  |  | (35) |  |  | (82) |  |  | (54) |
Net earnings from continuing operations attributable to common stockholders for Basic EPS | 1,658 |  |  | 892 |  |  | 3,319 |  |  | 1,468 |
Adjustment for interest on convertible debentures | — |  |  | 1 |  |  | — |  |  | 1 |
Adjustment for MCPS dividends for dilutive MCPS | 20 |  | — |  |  | 40 |  |  | — |
Net earnings from continuing operations attributable to common stockholders after assumed conversions for Diluted EPS | $ | 1,678 |  |  | $ | 893 |  |  | $ | 3,359 |  |  | $ | 1,469 |
Denominator: |  |  |  |  |  |  |
Weighted average common shares outstanding used in Basic EPS | 714.5 |  |  | 705.1 |  |  | 713.9 |  |  | 701.1 |
Incremental common shares from: |  |  |  |  |  |  |
Assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs | 10.5 |  |  | 12.0 |  |  | 10.6 |  |  | 10.8 |
Assumed conversion of the convertible debentures | — |  |  | 1.1 |  |  | 0.1 |  |  | 1.2 |
Weighted average MCPS converted shares | 11.0 |  |  | — |  |  | 11.0 |  |  | — |
Weighted average common shares outstanding used in Diluted EPS | 736.0 |  |  | 718.2 |  |  | 735.6 |  |  | 713.1 |
Basic EPS from continuing operations | $ | 2.32 |  |  | $ | 1.27 |  |  | $ | 4.65 |  |  | $ | 2.09 |
Diluted EPS from continuing operations | $ | 2.28 |  |  | $ | 1.24 |  |  | $ | 4.57 |  |  | $ | 2.06 |

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