Earnings Per Share

3 Months Ended

Mar. 31, 2018

Notes To Financial Statements [Abstract]

EARNINGS PER SHARE

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 months ended March 31, 2018 and April 1, 2017:



	Year-to-Date
	2018		2017
Numerator (in millions):
Net earnings attributable to common shareowners¹	$	170.6	$	393.7

Denominator (in thousands):
Basic weighted-average shares	150,612		149,208
Dilutive effect of stock contracts and awards	3,293		2,318
Diluted weighted-average shares	153,905		151,526
Earnings per share of common stock¹:
Basic	$	1.13	$	2.64
Diluted	$	1.11	$	2.60

¹Prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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):



	Year-to-Date
	2018	2017
Number of stock options	1,164	1,163

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 was 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. As of March 31, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1687, equivalent to a conversion price of approximately $162.11 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, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the convertible preferred stock were anti-dilutive during February and March 2018.