Earnings Per Share

9 Months Ended

Oct. 01, 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				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Basic:
Net income	$	170	$	199	$	277	$	646
Weighted-average shares outstanding	51,834,236		53,418,055		52,387,838		53,449,239
Basic earnings per share	$	3.28	$	3.72	$	5.29	$	12.08

Diluted:
Net income	$	170	$	199	$	277	$	646
Weighted-average shares outstanding	51,834,236		53,418,055		52,387,838		53,449,239
Dilutive shares	323,616		448,504		368,793		462,574
Diluted weighted-average shares outstanding	52,157,852		53,866,559		52,756,631		53,911,813
Diluted earnings per share	$	3.26	$	3.69	$	5.25	$	11.98

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 195,922 and 169,810 shares that were anti-dilutive for the three and nine months ended October 1, 2022, respectively. There were 25,355 and 8,391 shares that were anti-dilutive for the three and nine months ended October 2, 2021, respectively.