Computation of Earnings Per Share

9 Months Ended

Oct. 02, 2022

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of shares of common stock outstanding. Diluted EPS is computed based on the sum of the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares of common stock consist of shares issuable from stock options, unvested RSUs and restricted stock. Potentially dilutive shares of common stock from outstanding stock options and unvested RSUs are determined using the average share price for each period under the treasury stock method.

The following table presents the calculation of the weighted-average shares used in computing basic and diluted EPS:


	Three Months Ended		Nine Months Ended
(In millions)	October 2, 2022	October 3, 2021	October 2, 2022	October 3, 2021




Basic weighted-average shares of common stock outstanding	66.9	41.7	53.6	41.7
Dilutive potential shares issuable from stock options and unvested RSUs	0.6	0.8	0.6	0.8
Diluted weighted-average shares of common stock outstanding	67.5	42.5	54.2	42.5
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	1.6	0.2	1.5	0.1

Potentially dilutive shares excluded from the calculation above represent stock options when the combined exercise price and unrecognized stock-based compensation are greater than the average market price for the Company’s common stock because their effect is anti-dilutive.