Earnings Per Share

3 Months Ended

Apr. 02, 2022

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
	April 2, 2022		April 3, 2021
Basic:
Net income	$	205	$	228
Weighted-average shares outstanding	53,021,423		53,484,265
Basic earnings per share	$	3.86	$	4.26

Diluted:
Net income	$	205	$	228
Weighted-average shares outstanding	53,021,423		53,484,265
Dilutive shares	425,317		480,065
Diluted weighted-average shares outstanding	53,446,740		53,964,330
Diluted earnings per share	$	3.83	$	4.22

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 40,771 and 570 shares that were anti-dilutive for the three months ended April 2, 2022 and April 3, 2021, respectively.