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Earnings Per Common Share
 6 Months Ended
Jul. 02, 2022
Earnings Per Share [Abstract]  
Earnings Per Common Share

Note 8. Earnings Per Common Share

 

The following table sets forth the computation of basic and diluted earnings per share (in millions, except shares in thousands, and per share data):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 2, 2022

 

 

July 3, 2021

 

 

July 2, 2022

 

 

July 3, 2021

 

Numerator for Basic and Diluted Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

94

 

 

$

58

 

 

$

181

 

 

$

107

 

Denominator for Basic and Diluted Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average basic number of shares outstanding

 

 

145,457

 

 

 

143,939

 

 

 

145,286

 

 

 

143,657

 

Add: dilutive effect of stock equivalents

 

 

3,372

 

 

 

4,389

 

 

 

3,550

 

 

 

4,393

 

Weighted average diluted number of shares outstanding

 

 

148,829

 

 

 

148,328

 

 

 

148,836

 

 

 

148,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.65

 

 

$

0.40

 

 

$

1.25

 

 

$

0.74

 

Diluted

 

$

0.63

 

 

$

0.39

 

 

$

1.22

 

 

$

0.72

 

 

Diluted earnings per common share is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of the Company’s common stock for the three and six months ended July 2, 2022 and July 3, 2021. For the three and six months ended July 2, 2022, average options and other rights to purchase approximately 0.9 million shares of common stock were outstanding and anti-dilutive, and therefore excluded from the computation of diluted earnings per common share. In addition, an average of 1.0 million and 0.9 million shares of performance-based unit awards are excluded from the computation of diluted earnings per common share for the three and six months ended July 2, 2022, respectively, as the contingency had not been satisfied. For the three and six months ended July 3, 2021, average options and other rights to purchase approximately 0.1 million shares of common stock were outstanding and anti-dilutive, and therefore excluded from the computation of diluted income per common share. An average of approximately 0.9 million and 0.8 million shares of performance-based unit awards are excluded from the computation of diluted earnings per common share for the three and six months ended July 3, 2021, respectively, as the contingency had not been satisfied.