Earnings Per Share

9 Months Ended

Oct. 02, 2021

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 share-based compensation awards were converted into common shares during the period.

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


	Three Months Ended				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Basic:
Net income	$	199	$	116	$	646	$	305
Weighted-average shares outstanding	53,418,055		53,300,036		53,449,239		53,460,891
Basic earnings per share	$	3.72	$	2.18	$	12.08	$	5.70

Diluted:
Net income	$	199	$	116	$	646	$	305
Weighted-average shares outstanding	53,418,055		53,300,036		53,449,239		53,460,891
Dilutive shares	448,504		416,270		462,574		486,895
Diluted weighted-average shares outstanding	53,866,559		53,716,306		53,911,813		53,947,786
Diluted earnings per share	$	3.69	$	2.16	$	11.98	$	5.65

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 25,355 and 8,391 shares that were anti-dilutive for the three and nine months ended October 2, 2021. There were 74,588 and 105,219 shares that were anti-dilutive for the three and nine months ended September 26, 2020, respectively.