Earnings Per Share (Notes)

12 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE

The Company calculates earnings per share in accordance with FASB ASC Topic 260, Earnings Per Share (“ASC 260”). ASC 260 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. Under the guidance in ASC 260, the Company’s unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and must be included in the computation of earnings per share pursuant to the two-class method.

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



	Fiscal Year
(In millions, except per share data)	2016			2015			2014
Numerator:
Net earnings attributable to Wolverine World Wide, Inc.	$	87.7		$	122.8		$	133.1
Adjustment for earnings allocated to nonvested restricted common stock	(2.1		)	(2.8		)	(2.9		)
Net earnings used to calculate basic earnings per share	85.6			120.0			130.2
Adjustment for earnings reallocated to nonvested restricted common stock	0.1			0.1			0.1
Net earnings used to calculate diluted earnings per share	$	85.7		$	120.1		$	130.3
Denominator:
Weighted average shares outstanding	99.0			102.0			101.4
Adjustment for nonvested restricted common stock	(3.7		)	(3.4		)	(3.2		)
Shares used to calculate basic earnings per share	95.3			98.6			98.2
Effect of dilutive stock options	0.9			1.4			1.9
Shares used to calculate diluted earnings per share	96.2			100.0			100.1
Net earnings per share:
Basic	$	0.90		$	1.22		$	1.33
Diluted	$	0.89		$	1.20		$	1.30

Options granted to purchase 3,100,328 shares of common stock in fiscal 2016, 2,264,711 shares in fiscal 2015 and 1,116,576 shares in fiscal 2014 have not been included in the denominator for the computation of diluted earnings per share for each of those fiscal years because they were anti-dilutive.

The Company has 2,000,000 authorized shares of $1 par value preferred stock, none of which was issued or outstanding as of December 31, 2016 or January 2, 2016. The Company has designated 150,000 shares of preferred stock as Series A junior participating preferred stock and 500,000 shares of preferred stock as Series B junior participating preferred stock for possible future issuance.

The Company’s Board of Directors approved a common stock repurchase program on February 11, 2014. This program, which was terminated on August 8, 2016, authorized the repurchase of up to $200.0 million of common stock. On August 8, 2016, the Company's Board of Directors approved a new common stock repurchase program that authorizes the repurchase of up to $300.0 million in common stock over a four-year period, although the annual amount of any stock repurchases are restricted under the terms of the Company's Credit Agreement. The Company repurchased $61.9 million, $92.6 million and $0 of Company common stock in fiscal years 2016, 2015 and 2014, respectively, under stock repurchase plans. In addition to the stock repurchase program activity, the Company acquired $4.9 million, $7.7 million and $10.5 million of shares in fiscal years 2016, 2015 and 2014, respectively, in connection with employee transactions related to stock incentive plans.