Earnings (Loss) Per Share

6 Months Ended

Jul. 01, 2023

Basic net earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) 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 (loss) per share (in millions, except share data):


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Basic:
Net income (loss)	$	144	$	(98)	$	294	$	107
Weighted-average shares outstanding (1)	51,377,064		52,138,470		51,395,062		52,642,348
Basic earnings (loss) per share	$	2.80	$	(1.87)	$	5.72	$	2.04

Diluted:
Net income (loss)	$	144	$	(98)	$	294	$	107
Weighted-average shares outstanding (1)	51,377,064		52,138,470		51,395,062		52,642,348
Dilutive shares (2)	330,396		—		328,964		391,381
Diluted weighted-average shares outstanding	51,707,460		52,138,470		51,724,026		53,033,729
Diluted earnings (loss) per share	$	2.78	$	(1.87)	$	5.68	$	2.02

(1) In periods of a net loss, restricted stock and performance share awards, which are participating securities, are excluded from weighted-average shares outstanding.

(2) In periods of net loss, all unvested share-based awards were anti-dilutive and therefore excluded from diluted shares.

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 247,453 and 151,872 shares that were anti-dilutive for the three and six months ended July 1, 2023, respectively. There were 630,182 and 335,476 shares that were anti-dilutive for the three and six months ended July 2, 2022, respectively.