NET EARNINGS PER SHARE AND SHARE REPURCHASES

6 Months Ended

Jun. 30, 2023

NET EARNINGS PER SHARE AND SHARE REPURCHASES

NOTE 4: NET EARNINGS PER SHARE AND SHARE REPURCHASES

Our basic and diluted earnings per share were:

●

$0.31 during second quarter 2023 and $0.52 during year-to-date 2023;

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$1.06 during second quarter 2022 and $2.09 during year-to-date 2022.

Basic earnings per share is net earnings divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. Diluted earnings per share is net earnings divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares.


	QUARTER ENDED				YEAR-TO-DATE ENDED
SHARES IN THOUSANDS	JUNE 2023		JUNE 2022		JUNE 2023		JUNE 2022
Weighted average common shares outstanding – basic		732,021		744,542		732,599		746,017
Dilutive potential common shares:
Stock options		111		308		124		346
Restricted stock units		20		410		23		415
Performance share units		210		322		215		416
Total effect of outstanding dilutive potential common shares		341		1,040		362		1,177
Weighted average common shares outstanding – dilutive		732,362		745,582		732,961		747,194

We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units.

Potential Shares Not Included in the Computation of Diluted Earnings per Share

The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods.


	QUARTER ENDED				YEAR-TO-DATE ENDED
SHARES IN THOUSANDS	JUNE 2023		JUNE 2022		JUNE 2023		JUNE 2022
Stock options		787		—		787		—
Performance share units		682		573		682		573

Share Repurchase Program

On September 22, 2021, we announced that our board of directors approved a new share repurchase program (the 2021 Repurchase Program) under which we are authorized to repurchase up to $1 billion of outstanding shares. Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in February 2019 (the 2019 Repurchase Program).

We repurchased 1,689,874 common shares for approximately $50 million (including transaction fees) under the 2021 Repurchase Program during second quarter 2023 and 2,805,434 common shares for approximately $85 million under the 2021 Repurchase Program during year-to-date 2023. As of June 30, 2023, we had remaining authorization of $292 million for future share repurchases. During year-to-date 2022, we repurchased 6,982,462 common shares for approximately $259 million (including transaction fees) under the 2021 Repurchase Program.

All common stock repurchases under the 2021 Repurchase Program were made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability for repurchases that have not yet been settled as of period end. There were no unsettled shares as of June 30, 2023, and 223,548 unsettled shares (approximately $7 million) as of December 31, 2022.