Net Earnings Per Share

9 Months Ended

Sep. 29, 2017

NOTE 10. NET EARNINGS PER SHARE

Basic net earnings per share (“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 nine months ended September 29, 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 all periods 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 September 29, 2017:
Basic EPS	$	267.8	347.7	$	0.77
Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards	—		5.2
Diluted EPS	$	267.8	352.9	$	0.76

For the Three Months Ended September 30, 2016:
Basic EPS	$	226.9	346.0	$	0.66
Incremental shares from assumed issuance of shares under stock-based compensation plans	—		3.2
Diluted EPS	$	226.9	349.2	$	0.65

For the Nine Months Ended September 29, 2017:
Basic EPS	$	707.6	347.3	$	2.04
Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards	—		4.9
Diluted EPS	$	707.6	352.2	$	2.01

For the Nine Months Ended September 30, 2016:
Basic EPS	$	647.8	345.5	$	1.87
Incremental shares from assumed issuance of shares under stock-based compensation plans	—		1.1
Diluted EPS	$	647.8	346.6	$	1.87

On August 3, 2017, we declared a regular quarterly dividend of $0.07 per share paid on September 29, 2017 to holders of record on August 25, 2017. For the nine months ended September 29, 2017, cash dividend payments of $72.8 million were recorded as dividends to shareholders in the Consolidated Condensed Statement of Changes in Equity.