Earnings Per Share

9 Months Ended

Sep. 28, 2019

EARNINGS PER SHARE

The Company calculates earnings per share in accordance with FASB Accounting Standards Codification (“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.



	Quarter Ended						Year-To-Date Ended
(In millions, except per share data)	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Numerator:
Net earnings attributable to Wolverine World Wide, Inc.	$	48.7		$	58.8		$	129.4		$	160.8
Adjustment for earnings allocated to non-vested restricted common stock	(1.0		)	(1.2		)	(2.6		)	(3.4		)
Net earnings used in calculating basic earnings per share	47.7			57.6			126.8			157.4
Adjustment for earnings reallocated from non-vested restricted common stock	—			—			0.1			0.1
Net earnings used in calculating diluted earnings per share	$	47.7		$	57.6		$	126.9		$	157.5
Denominator:
Weighted average shares outstanding	83.5			94.9			87.3			95.2
Adjustment for non-vested restricted common stock	(0.5)			(1.7)			(0.7)			(1.8)
Shares used in calculating basic earnings per share	83.0			93.2			86.6			93.4
Effect of dilutive stock options	0.9			2.1			1.4			2.0
Shares used in calculating diluted earnings per share	83.9			95.3			88.0			95.4
Net earnings per share:
Basic	$	0.57		$	0.62		$	1.46		$	1.69
Diluted	0.57			0.60			1.44			1.65

For the quarter and year-to-date ended September 28, 2019, 1,228,157 and 131,004 outstanding stock options, respectively, have not been included in the denominator for the computation of diluted earnings per share because they were anti-dilutive.

For the quarter and year-to-date ended September 29, 2018, 18,779 and 24,250 outstanding stock options, respectively, have not been included in the denominator for the computation of diluted earnings per share because they were anti-dilutive.