Capital Stock and Earnings Per Share

3 Months Ended

Mar. 31, 2023

CAPITAL STOCK AND EARNINGS PER SHARE

Earnings Per Share

Basic earnings per share is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by adjusting weighted average common shares outstanding for the dilutive effect of the assumed issuance of shares under stock-based compensation plans, determined using the treasury-stock method, except where the inclusion of such shares would have an anti-dilutive impact.

Information related to the calculation of net earnings per share of common stock is summarized as follows:


	Three Months Ended
($ and shares in millions, except per share amounts)	March 31, 2023		April 1, 2022
Numerator:
Net earnings	$	82.8	$	250.2

Denominator:
Basic weighted average common shares outstanding	155.7		165.9
Effect of dilutive stock options and RSUs	0.4		0.6
Diluted weighted average common shares outstanding	156.1		166.5

Earnings per share:
Basic	$	0.53	$	1.51
Diluted	$	0.53	$	1.50

Anti-dilutive shares	3.4		3.4

Share Repurchase Program

On May 24, 2022, the Company’s Board of Directors approved a replenishment of the Company’s previously approved share repurchase program announced in May 2021, bringing the total amount authorized for future share repurchases back up to $500.0 million. Under the share repurchase program, the Company may purchase shares of common stock from time to time in open market transactions, privately negotiated transactions, accelerated share repurchase programs, or by combinations of such methods, any of which may use prearranged trading plans that are designed to meet the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations and other market and economic conditions. The share repurchase program may be suspended or discontinued at any time and has no expiration date.

During the three months ended March 31, 2023, the Company repurchased 0.9 million of the Company’s shares for $18.1 million through open market transactions at an average price per share of $20.93. As of March 31, 2023, the Company has remaining authorization to repurchase $410.8 million of its common stock under the share repurchase program.