Net Earnings Per Share

6 Months Ended

Jun. 30, 2017

NOTE 10. NET EARNINGS PER SHARE

Basic EPS is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans except where the inclusion of such shares would have an anti-dilutive impact. For both the three and six months ended June 30, 2017 the anti-dilutive options to purchase shares excluded from the diluted EPS calculation were immaterial.

We were incorporated on November 10, 2015, accordingly, we had no shares or common equivalent shares outstanding prior to that date. The total number of shares outstanding on July 1, 2016, immediately before the Separation, was 345.2 million and is utilized for the calculation of both basic and diluted EPS for the period prior to the Separation.

Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts):



	Net Earnings (Numerator)		Shares (Denominator)	Per Share Amount
For the Three Months Ended June 30, 2017:
Basic EPS	$	240.1	347.2	$	0.69
Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards	—		5.0
Diluted EPS	$	240.1	352.2	$	0.68

For the Three Months Ended July 1, 2016:
Basic and diluted EPS	$	238.9	345.2	$	0.69

For the Six Months Ended June 30, 2017:
Basic EPS	$	439.8	347.1	$	1.27
Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards	—		4.7
Diluted EPS	$	439.8	351.8	$	1.25

For the Six Months Ended July 1, 2016:
Basic and diluted EPS	$	420.9	345.2	$	1.22

On April 13, 2017, we declared a regular quarterly dividend of $0.07 per share paid on June 30, 2017 to holders of record on May 26, 2017. For the six months ended June 30, 2017, cash dividend payments of $48.6 million were recorded as dividends to shareholders in the Consolidated Condensed Statement of Changes in Equity.