Earnings Per Share

6 Months Ended

Jul. 01, 2017

Notes To Financial Statements [Abstract]

The following table reconciles net earnings attributable to common shareowners and the weighted-average shares outstanding used to calculate basic and diluted earnings per share for the three and six months ended July 1, 2017 and July 2, 2016:



	Second Quarter				Year-to-Date
	2017		2016		2017		2016
Numerator (in millions):
Net Earnings Attributable to Common Shareowners	$	277.2	$	271.5	$	670.3	$	460.9

Denominator (in thousands):
Basic earnings per share — weighted-average shares	149,514		145,135		149,353		145,583
Dilutive effect of stock contracts and awards	2,712		2,128		2,509		1,960
Diluted earnings per share — weighted-average shares	152,226		147,263		151,862		147,543
Earnings per share of common stock:
Basic	$	1.85	$	1.87	$	4.49	$	3.17
Diluted	$	1.82	$	1.84	$	4.41	$	3.12

The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):



	Second Quarter		Year-to-Date
	2017	2016	2017	2016
Number of stock options	—	972	582	1,281

As described in detail in Note J, Equity Arrangements, the Company issued $750 million Equity Units in May 2017 comprised of $750.0 million of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible preferred stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate is initially 6.1627 shares of common stock per one share of convertible preferred stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. The convertible preferred stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference, if the Company elects to settle such excess in common shares, would be included in the denominator of diluted earnings per share.

As described in detail in Note J, Equity Arrangements, the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during January and February 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million.