EARNINGS PER SHARE

3 Months Ended

Mar. 28, 2020

NOTE 7. EARNINGS PER SHARE

The following table represents the calculation of earnings per common share – basic and diluted:

	First Quarter
(In millions, except per share amounts)	2020		2019
Basic Earnings Per Share
Numerator:
Net income	$	45	$	8
Denominator:
Weighted-average shares outstanding		529		543
Basic earnings per share	$	0.09	$	0.01
Diluted Earnings Per Share
Numerator:
Net income	$	45	$	8
Denominator:
Weighted-average shares outstanding		529		543
Effect of dilutive securities:
Stock options and restricted stock		13		18
Diluted weighted-average shares outstanding		542		561
Diluted earnings per share	$	0.08	$	0.01

Awards of stock options and nonvested shares representing 5 million additional shares of common stock were outstanding for the first quarter of 2020, and 4 million for the first quarter of 2019, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

As disclosed in the Company’s definitive proxy statement filed on March 26, 2020, if approved by the Company’s shareholders, the Company may implement a reverse stock split substantially concurrently with the consummation of the Reorganization. If implemented, all share and per share amounts will be retroactively adjusted to reflect the reverse stock split. The Reorganization is not a condition to the reverse stock split.