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Earnings Per Share
 6 Months Ended
Jul. 01, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per share follows:
Three Months EndedSix Months Ended
(in millions, except per share data)July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Numerator for Basic and Diluted Earnings Per Share:
Net income$50 $94 $107 $181 
Denominator for Basic and Diluted Earnings Per Share:
Weighted average basic number of common shares outstanding147 145 147 145 
Plus: dilutive effect of common stock equivalents2 4 2 4 
Weighted average diluted number of common shares outstanding149 149 149 149 
Earnings per share:
Basic$0.34 $0.65 $0.73 $1.25 
Diluted$0.34 $0.63 $0.72 $1.22 
Diluted earnings per 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 our common stock for the period. For the three and six months ended July 1, 2023, average options and other rights to purchase approximately 2.1 million and 1.7 million shares of common stock, respectively, were outstanding and anti-dilutive, and therefore excluded from the computation of diluted earnings per share. In addition, an average of 0.9 million and 0.8 million shares of PSU awards are excluded from the computation of diluted earnings per share for the three and six months ended July 1, 2023, respectively, as the contingency had not been satisfied. 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 income per share. In addition, an average of 1.0 million and 0.9 million shares of PSU awards are excluded from the computation of diluted earnings per share for the three and six months ended July 2, 2022, respectively, as the contingency had not been satisfied.