Earnings Per Share

9 Months Ended

Sep. 27, 2025

Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted common shares outstanding. Diluted common shares outstanding is computed using the Treasury Stock method and, in periods of income, reflects the additional shares that would be outstanding if dilutive share-based compensation awards were converted into common shares during the period.

Earnings per share (in millions, except share data):


	Three Months Ended				Nine Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Basic:
Net income	$	101	$	137	$	349	$	365
Weighted-average shares outstanding	50,800,552		51,567,216		51,044,563		51,480,812
Basic earnings per share	$	1.98	$	2.65	$	6.83	$	7.09

Diluted:
Net income	$	101	$	137	$	349	$	365
Weighted-average shares outstanding	50,800,552		51,567,216		51,044,563		51,480,812
Dilutive shares	370,567		350,839		384,969		364,760
Diluted weighted-average shares outstanding	51,171,119		51,918,055		51,429,532		51,845,572
Diluted earnings per share	$	1.97	$	2.64	$	6.78	$	7.04

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 1,473 and 84,605 shares that were anti-dilutive for the three and nine months ended September 27, 2025, respectively. There were 1,621 and 61,240 shares that were anti-dilutive for the three and nine months ended September 28, 2024, respectively.