EARNINGS PER SHARE

12 Months Ended

Dec. 28, 2013

EARNINGS PER SHARE

NOTE 15. EARNINGS PER SHARE

The following table presents the calculation of net earnings (loss) per common share — basic and diluted:

(In millions, except per share amounts)	2013			2012			2011
Basic Earnings Per Share
Numerator:
Net income (loss) attributable to common stockholders	$	(93	)	$	(110	)	$	60
Denominator:
Weighted-average shares outstanding		318			280			278
Basic earnings (loss) per share	$	(0.29	)	$	(0.39	)	$	0.22
Diluted Earnings Per Share
Numerator:
Net income (loss)	$	(20	)	$	(77	)	$	96
Denominator:
Weighted-average shares outstanding		318			280			278
Effect of dilutive securities:
Stock options and restricted stock		7			5			5
Redeemable preferred stock		56			78			74
Diluted weighted-average shares outstanding		381			363			357
Diluted earnings (loss) per share		N/A			N/A			N/A

The weighted average share calculation for 2013 includes the 239 million shares issued related to the Merger from closing date to December 28, 2013.

Awards of options and nonvested shares representing an additional 6 million, 15 million and 14 million shares of common stock were outstanding for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive. For the three years presented, no tax benefits have been assumed in the weighted average share calculation in jurisdictions with valuation allowances. The diluted share amounts for 2013, 2012 and 2011 are provided for informational purposes, as the level of income (loss) for the periods causes basic earnings per share to be the most dilutive.

Shares of the redeemable preferred stock were fully redeemed in 2013. Following the July 2013 shareholder approval of the transactions contemplated by the Merger Agreement, 50 percent of the outstanding preferred stock was redeemed and the remaining 50 percent was redeemed in November 2013 in connection with the Merger closing. In periods in which the redeemable preferred stock were outstanding, basic earnings (loss) per share (“EPS”) was computed after consideration of preferred stock dividends. The redeemable preferred stock had equal dividend participation rights with common stock that required application of the two-class method for computing earnings per share. In periods of sufficient earnings, this method assumes an allocation of undistributed earnings to both participating stock classes. The two-class method impacted the computation of earnings for the first quarter of 2012 and third quarter of 2013, but was not applicable to the full year 2012 or full year 2013 because it would have been antidilutive. The preferred stockholders were not required to fund losses. Refer to Note 11 for further redemption details.