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EARNINGS PER SHARE | 9 Months Ended
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Oct. 02, 2021
Earnings Per Share [Abstract] |
EARNINGS PER SHARE | EARNINGS PER SHARE (as Restated) 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 October 2, 2021 and September 26, 2020:
| Third Quarter |  | Year-to-Date
| 2021 |  | 2020 |  | 2021 |  | 2020
| (As Restated) |  | (As Restated) |  | (As Restated) |  | (As Restated)
Numerator (in millions): |  |  |  |  |  |  |
Net Earnings Attributable to Common Shareowners | $ | 414.2 |  |  | $ | 385.5 |  |  | $ | 1,346.9 |  |  | $ | 751.7 |
Add: Contract adjustment payments accretion | $ | 0.4 |  |  | $ | 0.1 |  |  | $ | 0.9 |  |  | $ | 1.5 |
Net Earnings Attributable to Common Shareowners - Diluted | $ | 414.6 |  |  | $ | 385.6 |  |  | $ | 1,347.8 |  |  | $ | 753.2 |
Denominator (in thousands): |  |  |  |  |  |  |
Basic weighted-average shares outstanding | 159,444 |  |  | 156,370 |  |  | 158,494 |  |  | 153,345 |
Dilutive effect of stock contracts and awards | 5,892 |  |  | 6,305 |  |  | 6,406 |  |  | 8,753 |
Diluted weighted-average shares outstanding | 165,336 |  |  | 162,675 |  |  | 164,900 |  |  | 162,098 |
Earnings per share of common stock: |  |  |  |  |  |  |
Basic | $ | 2.60 |  |  | $ | 2.47 |  |  | $ | 8.50 |  |  | $ | 4.90 |
Diluted | $ | 2.51 |  |  | $ | 2.37 |  |  | $ | 8.17 |  |  | $ | 4.65 |
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
| 2021 |  | 2020 |  | 2021 |  | 2020
Number of stock options | 1,042 |  |  | 2,059 |  |  | 948 |  |  | 2,947 |
In November 2019, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million ("2019 Equity Units"). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract (“2022 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on November 15, 2022, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series D Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series D Preferred Stock”). On and after November 15, 2022, the Series D 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 5.2263 shares of common stock per one share of Series D Preferred Stock, which was equivalent to an initial conversion price of approximately $191.34 per share of common stock. As of October 2, 2021, due to customary anti-dilution provisions, the conversion rate was 5.2301, equivalent to a conversion price of approximately $191.20 per share of common stock. The Series D Preferred Stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the Series D Preferred Stock will be settled in cash except to the extent that the conversion value 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 are included in the denominator of diluted earnings per share in periods in which they are dilutive. In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million ("2017 Equity Units"). Each unit had a stated amount of $100 and initially consisted of a three-year forward stock purchase contract (“2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). As further discussed in Note A, Significant Accounting Policies - Restatement, the shares associated with the forward stock purchase contracts component of the 2019 Equity Units and 2017 Equity Units have been reflected in diluted earnings per share using the if-converted method pursuant to paragraph 260-10-45-40 of ASC 260, Earnings Per Share. In May 2020, the Company successfully remarketed the Series C Preferred Stock (the "Remarketed Series C Preferred Stock") resulting in cash proceeds of $750.0 million. Upon completion of the remarketing, the holders of the 2017 Equity Units received 5,463,750 common shares and the Company issued 750,000 shares of Remarketed Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. Holders of the Remarketed Series C Preferred Stock were entitled to receive cumulative dividends, if declared by the Board of Directors, at an initial fixed rate equal to 5.0% per annum of the $1,000 per share liquidation preference (equivalent to $50.00 per annum per share). Beginning on May 15, 2020, the holders had the option to convert the Remarketed Series C Preferred Stock into common stock. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. In connection with the remarketing described above, the conversion rate was reset to 6.7352 shares of the Company's common stock per one share of Remarketed Series C Preferred Stock, which was equivalent to a conversion price of approximately $148.47 per share of common stock. On April 28, 2021, the Company informed holders that it would redeem all outstanding shares of the Remarketed Series C Preferred Stock on June 3, 2021 (the “Redemption Date”) at $1,002.50 per share in cash (the “Redemption Price”), which was equal to 100% of the liquidation preference of a share of Remarketed Series C Preferred Stock, plus accumulated and unpaid dividends to, but excluding, the Redemption Date. If a holder elected to convert its shares of Remarketed Series C Preferred Stock prior to the Redemption Date, the Company elected a combination settlement with a specified ca sh amount of $1,000 per share. In June 2021, the Company redeemed the Remarketed Series C Preferred Stock and settled all conversions, paying $750 million in cash and issuing 1,469,055 common shares. The conversion rate used was 6.7548 (equivalent to a conversion price set at $148.04 per common share). Prior to the Redemption Date, the Remarketed Series C Preferred Stock was excluded from the denominator of the diluted earnings per share calculation on the basis that the Remarketed Series C Preferred Stock would be settled in cash except to the extent that the conversion value exceeded 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 were included in the denominator of diluted earnings per share in periods in which they were dilutive. Refer to Note J, Equity Arrangements (as Restated), for further discussion of the above transactions.

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