EARNINGS PER SHARE

3 Months Ended

Apr. 01, 2023

The following table reconciles net (loss) earnings attributable to common shareowners and the weighted-average shares outstanding used to calculate basic and diluted (loss) earnings per share for the three months ended April 1, 2023 and April 2, 2022:


	Year-to-Date
		2023		2022
Numerator (in millions):
Net (Loss) Earnings from Continuing Operations Attributable to Common Shareowners		$	(187.8)	$	155.5
Add: Contract adjustment payments accretion		—		0.3
Net (Loss) Earnings from Continuing Operations Attributable to Common Shareowners - Diluted		$	(187.8)	$	155.8
Net earnings from discontinued operations		—		19.8
Net (Loss) Earnings Attributable to Common Shareowners - Diluted		$	(187.8)	$	175.6


	Year-to-Date
		2023	2022
Denominator (in thousands):
Basic weighted-average shares outstanding		149,574	155,433
Dilutive effect of stock contracts and awards		—	9,980
Diluted weighted-average shares outstanding		149,574	165,413


	Year-to-Date
		2023		2022
(Loss) earnings per share of common stock:
Basic (loss) earnings per share of common stock:
Continuing operations		$	(1.26)	$	1.00
Discontinued operations		$	—	$	0.13
Total basic (loss) earnings per share of common stock		$	(1.26)	$	1.13

Diluted (loss) earnings per share of common stock:
Continuing operations		$	(1.26)	$	0.94
Discontinued operations		$	—	$	0.12
Total dilutive (loss) earnings per share of common stock		$	(1.26)	$	1.06

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):


	Year-to-Date
		2023	2022
Number of stock options		5,735	2,545

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 had a stated amount of $100 and initially consisted 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”). The shares associated with the forward stock purchase contracts component of the 2019 Equity Units were reflected in diluted earnings per share in the first quarter of 2022 using the if-converted method. Upon the adoption of ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), in the first quarter of 2022, the common shares that would be required to settle the applicable conversion value of the Series D Preferred Stock totaling 4.1 million was included in the denominator of diluted earnings per share using the if-converted method through the date of redemption as discussed below.

In November 2022, the Company generated cash proceeds of $750 million from the successful remarketing of the Series D Preferred Stock (the "Remarketed Series D Preferred Stock"). Upon completion of the remarketing, the holders of the 2019 Equity Units received 4,723,500 common shares and the Company issued 750,000 shares of Remarketed Series D Preferred Stock. Holders of the Remarketed Series D Preferred Stock were entitled to receive cumulative dividends, if declared by the Board of Directors, at an initial fixed rate equal to 7.5% per annum of the $1,000 per share liquidation preference (equivalent to $75.00 per annum per share). On November 15, 2022, the Company informed holders that it would redeem all outstanding shares of the Remarketed Series D Preferred Stock on December 22, 2022 at $1,007.71 per share in cash, which was equal to 100% of the liquidation preference of a share of Remarketed Series D Preferred Stock, plus accumulated and unpaid dividends to, but excluding December 22, 2022. In December 2022, the Company redeemed the Remarketed Series D Preferred Stock, paying $750 million in cash.

Refer to Note I, Equity Arrangements, for further discussion.