EARNINGS PER SHARE

12 Months Ended

Jan. 02, 2021

The calculations of basic and diluted earnings per share ("EPS") is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. On May 22, 2019, the Separation from VF was effected through a pro-rata distribution of one share of the Company's common stock for every seven shares of VF common stock held at the close of business on the record date of May 10, 2019. As a result, on May 23, 2019, the Company had 56,647,561 shares of common stock outstanding. This share amount was utilized for the calculations of basic and diluted earnings per share for all periods presented through the Separation date. After the Separation date, actual outstanding shares were used in the calculations of both basic and diluted weighted average number of common shares outstanding.

The following table presents the calculations of basic and diluted EPS:


	Year Ended December

(In thousands, except per share amounts)		2020		2019		2018
Net income		$	67,923	$	96,654	$	263,073
Basic weighted average shares outstanding		56,994		56,688		56,648
Dilutive effect of stock-based awards		864		521		—
Diluted weighted average shares outstanding		57,858		57,209		56,648
Earnings per share:
Basic earnings per share		$	1.19	$	1.71	$	4.64
Diluted earnings per share		$	1.17	$	1.69	$	4.64

A total of 0.8 million and 0.1 million shares related to stock-based awards were excluded from the diluted earnings per share calculations for the years ended December 2020 and December 2019, respectively, because the effect of their inclusion would have been anti-dilutive.

For the years ended December 2020 and December 2019, respectively, a total of 0.4 million and 0.3 million shares of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.