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Earnings Per Share
 6 Months Ended
Jul. 01, 2022
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE
Earnings per share is calculated by dividing the applicable income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company and the assumed conversion impact of the Notes. The Company will settle any Notes conversions through a combination settlement by satisfying the principal amount outstanding with cash and any Notes conversion value in excess of the principal amount in cash or shares in the Company’s common stock or any combination thereof. As such, the Company uses the treasury stock method for the assumed conversion of the Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. As the Company will settle the principal amount of the Notes in cash upon conversion, the Notes do not have an impact on the Company's diluted earnings per share until the average share price of the Company’s common stock exceeds the conversion price of $21.01 per share in any applicable period. See the computation of earnings per share below for the dilutive impact of the Notes for the three and six months ended July 1, 2022 and July 2, 2021.


In connection with the offering of the Notes, the Company entered into Capped Calls (see further discussion in Note 13), which are intended to reduce or offset the potential dilution from shares of common stock issued upon conversion of the Notes. However, this impact is not included when calculating potentially dilutive shares since their effect is anti-dilutive. The Capped Calls will mitigate dilution from the conversion of the Notes up to the Company’s common stock price of $23.79. If the Notes are converted at a price higher than $23.79 per share, the Capped Calls will no longer mitigate dilution from the conversion of the Notes.
The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts):
Three Months EndedSix Months Ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Numerator:
Income from continuing operations, net of tax$44.5 $79.0 $114.9 $140.8 
Income from discontinued operations, net of tax$2.6 $11.1 $7.1 $21.0 
Net income $47.1 $90.1 $122.0 $161.8 
Denominator:
Weighted-average common shares outstanding used in basic earnings (loss) per share162.9 161.2 162.6 160.8 
Incremental common shares from:
Assumed exercise of dilutive options and vesting of dilutive restricted stock units3.3 4.5 3.8 4.5 
Assumed conversion of the Notes12.3 12.7 12.8 11.9 
Weighted average common shares outstanding used in diluted earnings (loss) per share178.5 178.4 179.2 177.2 
Earnings per share:
Earnings from continuing operations - basic$0.27 $0.49 $0.71 $0.88 
Earnings from continuing operations - diluted$0.25 $0.44 $0.64 $0.79 
Earnings from discontinued operations - basic$0.02 $0.07 $0.04 $0.13 
Earnings from discontinued operations - diluted$0.01 $0.06 $0.04 $0.12 
Earnings - basic$0.29 $0.56 $0.75 $1.01 
Earnings - diluted$0.26 $0.51 *$0.68 $0.91 
* Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding.

The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions):

Three Months EndedSix Months Ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Stock-based awards1.9 1.4 1.3 1.0 
Total1.9 1.4 1.3 1.0