Earnings Per Share

3 Months Ended

Mar. 28, 2020

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 28, 2020		March 30, 2019
Basic:
Net income	$	89	$	115
Weighted-average shares outstanding	53,760,873		53,905,426
Basic earnings per share	$	1.66	$	2.14

Diluted:
Net income	$	89	$	115
Weighted-average shares outstanding	53,760,873		53,905,426
Dilutive shares	557,171		649,442
Diluted weighted-average shares outstanding	54,318,044		54,554,868
Diluted earnings per share	$	1.65	$	2.12

Anti-dilutive options to purchase common shares are excluded from diluted earnings per share calculations. Anti-dilutive options consist primarily of stock appreciation rights with an exercise price greater than the average market closing price of the Class A Common Stock. There were 68,554 and 86,067 shares that were anti-dilutive for the three months ended March 28, 2020 and March 30, 2019, respectively.