Earnings Per Share

9 Months Ended

Sep. 28, 2019

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				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Basic:
Net income	$	136	$	127	$	375	$	306
Weighted-average shares outstanding	54,085,500		53,740,174		53,999,044		53,516,859
Basic earnings per share	$	2.52	$	2.37	$	6.95	$	5.72

Diluted:
Net income	$	136	$	127	$	375	$	306
Weighted-average shares outstanding	54,085,500		53,740,174		53,999,044		53,516,859
Dilutive shares	552,323		684,706		611,047		720,694
Diluted weighted-average shares outstanding	54,637,823		54,424,880		54,610,091		54,237,553
Diluted earnings per share	$	2.50	$	2.34	$	6.87	$	5.64

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 92,014 and 1,139 anti-dilutive shares for the three months ended September 28, 2019 and September 29, 2018, respectively. There were 53,356 and 87,458 anti-dilutive shares for the nine months ended September 28, 2019 and September 29, 2018, respectively.