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
	March 30, 2019		March 31, 2018
Basic:
Net income	$	115	$	109
Weighted-average shares outstanding	53,905,426		53,286,249
Basic earnings per share	$	2.14	$	2.04

Diluted:
Net income	$	115	$	109
Weighted-average shares outstanding	53,905,426		53,286,249
Dilutive shares	649,442		699,506
Diluted weighted-average shares outstanding	54,554,868		53,985,755
Diluted earnings per share	$	2.12	$	2.01

Anti-dilutive options to purchase common shares are excluded from diluted earnings per share calculations. Anti-dilutive options consist primarily of stock appreciation rights (“SARs”) with an exercise price greater than the average market closing price of the Class A common stock. There were 86,067 and 584 anti-dilutive shares for the three months ended March 30, 2019 and March 31, 2018, respectively.