Earnings Per Share

6 Months Ended

Jun. 29, 2024

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				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Basic:
Net income	$	113	$	144	$	228	$	294
Weighted-average shares outstanding	51,489,735		51,377,064		51,444,179		51,395,062
Basic earnings per share	$	2.19	$	2.80	$	4.43	$	5.72

Diluted:
Net income	$	113	$	144	$	228	$	294
Weighted-average shares outstanding	51,489,735		51,377,064		51,444,179		51,395,062
Dilutive shares	340,510		330,396		371,720		328,964
Diluted weighted-average shares outstanding	51,830,245		51,707,460		51,815,899		51,724,026
Diluted earnings per share	$	2.17	$	2.78	$	4.40	$	5.68

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 164,004 and 91,050 shares that were anti-dilutive for the three and six months ended June 29, 2024, respectively. There were 247,453 and 151,872 shares that were anti-dilutive for the three and six months ended July 1, 2023, respectively.