Note 2.

Earnings Per Share (EPS)

Basic earnings per share are based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share are based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	Oct. 1, 2017		Oct. 2, 2016		Oct. 1, 2017		Oct. 2, 2016
	(in millions, except per share data)

Net income attributable to MTI	$	41.7	$	41.6	$	119.3	$	96.7

Weighted average shares outstanding		35.3		34.9		35.1		34.8
Dilutive effect of stock options and stock units		0.3		0.4		0.5		0.3
Weighted average shares outstanding, adjusted		35.6		35.3		35.6		35.1

Basic earnings per share attributable to MTI	$	1.18	$	1.19	$	3.40	$	2.78

Diluted earnings per share attributable to MTI	$	1.17	$	1.18	$	3.35	$	2.75

Options to purchase 184,569 shares and 10,239 shares of common stock for the three-month and nine-month periods ended October 1, 2017 and October 2, 2016, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares.

In the first quarter of 2017, the Company adopted the provisions of ASU 2016-09, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting”. Under the new guidance excess income tax benefits are no longer included in the calculation of assumed proceeds. As such, the dilutive effect of stock options and stock units for the period ended October 1, 2017 is reflective of the new guidance.