Earnings Per Share

9 Months Ended

Sep. 26, 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				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Basic:
Net income	$	116	$	136	$	305	$	375
Weighted-average shares outstanding	53,300,036		54,085,500		53,460,891		53,999,044
Basic earnings per share	$	2.18	$	2.52	$	5.70	$	6.95

Diluted:
Net income	$	116	$	136	$	305	$	375
Weighted-average shares outstanding	53,300,036		54,085,500		53,460,891		53,999,044
Dilutive shares	416,270		552,323		486,895		611,047
Diluted weighted-average shares outstanding	53,716,306		54,637,823		53,947,786		54,610,091
Diluted earnings per share	$	2.16	$	2.50	$	5.65	$	6.87

Anti-dilutive options to purchase common shares are excluded from diluted earnings per share calculations. There were 74,588 and 92,014 shares that were anti-dilutive for the three months ended September 26, 2020 and September 28, 2019, respectively. There were 105,219 and 53,356 shares that were anti-dilutive for the nine months ended September 26, 2020 and September 28, 2019, respectively.