Earnings per Share

Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock method and in periods of income, reflects the additional shares that would be outstanding if dilutive stock options were exercised for common shares during the period.

Earnings per share (in millions, except share data):



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Basic:
Net income	$	70	$	17	$	179	$	25
Weighted-average shares outstanding	53,537,876		51,996,353		53,414,267		51,928,911
Basic earnings per share	$	1.31	$	0.33	$	3.35	$	0.49

Diluted:
Net income	$	70	$	17	$	179	$	25
Weighted-average shares outstanding	53,537,876		51,996,353		53,414,267		51,928,911
Dilutive shares	717,831		1,132,304		719,843		1,109,045
Diluted weighted-average shares outstanding	54,255,707		53,128,657		54,134,110		53,037,956
Diluted earnings per share	$	1.29	$	0.32	$	3.30	$	0.48

Outstanding options to purchase common shares were anti-dilutive and excluded from the earnings per share calculations of 86,726 and 273,216 for the three-month periods ended June 30, 2018 and of July 1, 2017, respectively. Outstanding options to purchase common shares were anti-dilutive and excluded from the earnings per share calculations of 87,310 and 701,272 for the six-month periods ended June 30, 2018 and July 1, 2017, respectively. Anti-dilutive securities consist primarily of stock appreciation rights (“SARs”) with an exercise price greater than the average market closing price of the Class A common stock.