Earnings Per Share

3 Months Ended

Apr. 01, 2023

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 diluted common shares outstanding. Diluted 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 1, 2023		April 2, 2022
Basic:
Net income	$	150	$	205
Weighted-average shares outstanding	51,420,536		53,021,423
Basic earnings per share	$	2.92	$	3.86

Diluted:
Net income	$	150	$	205
Weighted-average shares outstanding	51,420,536		53,021,423
Dilutive shares	327,533		425,317
Diluted weighted-average shares outstanding	51,748,069		53,446,740
Diluted earnings per share	$	2.90	$	3.83

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 56,291 and 40,771 shares that were anti-dilutive for the three months ended April 1, 2023 and April 2, 2022, respectively.