Earnings Per Share

9 Months Ended

Sep. 28, 2019

Notes To Financial Statements [Abstract]

EARNINGS PER SHARE

The following table reconciles net earnings attributable to common shareowners and the weighted-average shares outstanding used to calculate basic and diluted earnings per share for the three and nine months ended September 28, 2019 and September 29, 2018:



	Third Quarter				Year-to-Date
	2019		2018		2019		2018
Numerator (in millions):
Net Earnings Attributable to Common Shareowners	$	230.5	$	247.8	$	756.7	$	712.0

Denominator (in thousands):
Basic weighted-average shares outstanding	148,350		147,964		148,111		149,311
Dilutive effect of stock contracts and awards	2,273		2,635		2,188		2,914
Diluted weighted-average shares outstanding	150,623		150,599		150,299		152,225
Earnings per share of common stock:
Basic	$	1.55	$	1.67	$	5.11	$	4.77
Diluted	$	1.53	$	1.65	$	5.03	$	4.68

The following weighted-average stock options were not included in the computation of weighted-average diluted shares outstanding because the effect would be anti-dilutive (in thousands):



	Third Quarter		Year-to-Date
	2019	2018	2019	2018
Number of stock options	2,217	1,139	2,273	1,155

As described in detail in Note J, Equity Arrangements, the Company issued 7,500,000 Equity Units in May 2017 with a total notional value of $750.0 million. Each unit initially consists of 750,000 shares of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible preferred stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate was initially 6.1627 shares of common stock per one share of convertible preferred stock, which was equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of September 28, 2019, due to the customary anti-dilution provisions, the conversion rate was 6.1911, equivalent to a conversion price of approximately $161.52 per share of common stock. The convertible preferred stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference, if the Company elects to settle such excess in common shares, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the convertible preferred stock were anti-dilutive during 2019 and most of 2018.