EARNINGS PER SHARE

9 Months Ended

Oct. 03, 2021

EARNINGS PER SHARE

We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares.


	Three Months Ended
	October 3, 2021				September 27, 2020
	Common Stock		Class B Common Stock		Common Stock		Class B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)	$	131,247	$	49,643	$	119,431	$	44,308
Allocation of undistributed earnings	191,575		72,462		206,491		77,053
Total earnings—basic	$	322,822	$	122,105	$	325,922	$	121,361

Denominator (shares in thousands):
Total weighted-average shares—basic	145,665		60,614		147,688		60,614

Earnings Per Share—basic	$	2.22	$	2.01	$	2.21	$	2.00

Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation	$	322,822	$	122,105	$	325,922	$	121,361
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock	122,105		—		121,361		—
Reallocation of undistributed earnings	—		(369)		—		(317)
Total earnings—diluted	$	444,927	$	121,736	$	447,283	$	121,044

Denominator (shares in thousands):
Number of shares used in basic computation	145,665		60,614		147,688		60,614
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding	60,614		—		60,614		—
Employee stock options	625		—		557		—
Performance and restricted stock units	522		—		281		—
Total weighted-average shares—diluted	207,426		60,614		209,140		60,614

Earnings Per Share—diluted	$	2.14	$	2.01	$	2.14	$	2.00

There were no antidilutive stock options for the three months ended October 3, 2021. The earnings per share calculations for the three months ended September 27, 2020 excluded 15,000 stock options that would have been antidilutive.


	Nine Months Ended
	October 3, 2021				September 27, 2020
	Common Stock		Class B Common Stock		Common Stock		Class B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)	$	366,934	$	138,260	$	348,608	$	129,410
Allocation of undistributed earnings	462,505		174,257		371,084		138,219
Total earnings—basic	$	829,439	$	312,517	$	719,692	$	267,629

Denominator (shares in thousands):
Total weighted-average shares—basic	146,259		60,614		147,845		60,614

Earnings Per Share—basic	$	5.67	$	5.16	$	4.87	$	4.42

Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation	$	829,439	$	312,517	$	719,692	$	267,629
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock	312,517		—		267,629		—
Reallocation of undistributed earnings	—		(847)		—		(654)
Total earnings—diluted	$	1,141,956	$	311,670	$	987,321	$	266,975

Denominator (shares in thousands):
Number of shares used in basic computation	146,259		60,614		147,845		60,614
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding	60,614		—		60,614		—
Employee stock options	613		—		599		—
Performance and restricted stock units	371		—		366		—
Total weighted-average shares—diluted	207,857		60,614		209,424		60,614

Earnings Per Share—diluted	$	5.49	$	5.14	$	4.71	$	4.40

The earnings per share calculations for the nine months ended October 3, 2021 and September 27, 2020 excluded 43,000 and 15,000 stock options, respectively, that would have been antidilutive.