NET EARNINGS PER SHARE AND SHARE REPURCHASES

9 Months Ended

Sep. 30, 2021

NET EARNINGS PER SHARE AND SHARE REPURCHASES

NOTE 4: NET EARNINGS PER SHARE AND SHARE REPURCHASES

Our basic and diluted earnings per share were:

●	$0.64 during third quarter 2021 and $2.92 during year-to-date 2021;

●	$0.38 during third quarter 2020 and $0.68 during year-to-date 2020.

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	SEPTEMBER 2021		SEPTEMBER 2020		SEPTEMBER 2021		SEPTEMBER 2020
Weighted average common shares outstanding – basic		750,105		746,996		749,657		746,809
Dilutive potential common shares:
Stock options		293		401		318		246
Restricted stock units		730		570		709		297
Performance share units		315		483		315		178
Total effect of outstanding dilutive potential common shares		1,338		1,454		1,342		721
Weighted average common shares outstanding – dilutive		751,443		748,450		750,999		747,530

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	SEPTEMBER 2021		SEPTEMBER 2020		SEPTEMBER 2021		SEPTEMBER 2020
Stock options		789		2,260		789		2,260
Performance share units		1,067		729		1,067		729

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).

During year-to-date 2021, we repurchased 780,228 common shares for approximately $26 million under the 2019 Repurchase Program. As of September 30, 2021, we had remaining authorization of $1 billion for future share repurchases under the 2021 Repurchase Program. We did not repurchase shares during year-to-date 2020.

All common stock repurchases under the 2019 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 repurchases as of September 30, 2021 or December 31, 2020.