EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 26, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 7. EARNINGS (LOSS) PER SHARE

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

	Third Quarter				Year-to-Date
(In millions, except per share amounts)	2020		2019		2020			2019
Basic Earnings (Loss) Per Share
Numerator:
Net income (loss)	$	57	$	60	$	(337	)	$	44
Denominator:
Weighted-average shares outstanding		53		55		53			54
Basic earnings (loss) per share	$	1.07	$	1.09	$	(6.40	)	$	0.81
Diluted Earnings (Loss) Per Share
Numerator:
Net income (loss)	$	57	$	60	$	(337	)	$	44
Denominator:
Weighted-average shares outstanding		53		55		53			54
Effect of dilutive securities:
Stock options and restricted stock		1		—		—			1
Diluted weighted-average shares outstanding		54		55		53			55
Diluted earnings (loss) per share	$	1.04	$	1.09	$	(6.40	)	$	0.79

Awards of stock options and nonvested shares representing additional shares of outstanding common stock were less than 1 million in the third quarter of 2020, 2 million year-to-date 2020, 1 million in the third quarter of 2019, and less than 1 million year-to-date 2019, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

After obtaining approval of the Company’s shareholders on May 11, 2020, the Company’s Board of Directors determined to set a reverse stock split ratio of 1-for-10 for a reverse stock split of the Company’s outstanding shares of common stock, and a reduction in the number of authorized shares of the Company’s common stock by a corresponding ratio. The reverse stock split was effective on June 30, 2020. All share and per share amounts have been retroactively adjusted for the prior periods presented to give effect to this reverse stock split.