Earnings per Share

3 Months Ended

Mar. 29, 2019



6.	Earnings per Share

Basic earnings per share is computed by dividing net income by the number of weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average shares outstanding and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares represent the incremental ordinary shares issuable for restricted share units and share option exercises. The Company calculates the dilutive effect of outstanding restricted share units and share options on earnings per share by application of the treasury stock method. Dilutive securities, including participating securities, are not included in the computation of loss per share when the Company reports a net loss from continuing operations as the impact would be anti-dilutive.

The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows (in millions):



	Three Months Ended
	March 29, 2019	March 30, 2018
Basic	83.5	86.1
Dilutive impact of restricted share units and share options	1.1	—
Diluted	84.6	86.1

The computation of diluted weighted-average shares outstanding for the three months ended March 29, 2019 and March 30, 2018 excludes approximately 3.2 million and 3.9 million shares of equity awards, respectively, because the effect would have been anti-dilutive.