Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

v3.3.0.814
Earnings per Common Share
 9 Months Ended
Oct. 03, 2015
Earnings Per Share [Abstract]  
Earnings per Common Share
Earnings per Common Share

Basic earnings per common share is calculated by dividing Net earnings by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share is calculated similarly, except that the calculation includes the dilutive effect of stock-settled SARs and stock options (collectively “options”), non-vested stock awards and performance awards.

Basic and diluted earnings per common share for the three months and nine months ended October 3, 2015 and September 27, 2014, were calculated as follows:
 
Three Months Ended
 
Nine Months Ended
(in millions, except per share data)
October 3,
2015
 
September 27,
2014
 
October 3,
2015
 
September 27,
2014
Net earnings from continuing operations
$
72.2

 
$
61.0

 
$
236.4

 
$
197.2

Net earnings from discontinued operations, net of tax
3.7

 
43.4

 
14.3

 
52.8

Net earnings
$
75.9

 
$
104.4

 
$
250.7

 
$
250.0

 
 
 
 
 
 
 
 
Weighted average outstanding shares – basic
92.7

 
93.7

 
93.3

 
93.5

Dilutive effect of common stock equivalents
1.3

 
1.5

 
1.2

 
1.6

Weighted average outstanding shares – diluted
94.0

 
95.2

 
94.5

 
95.1

 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.78

 
$
0.65

 
$
2.54

 
$
2.11

Discontinued operations
0.04

 
0.46

 
0.15

 
0.56

Net earnings
$
0.82

 
$
1.11

 
$
2.69

 
$
2.67

 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.77

 
$
0.64

 
$
2.50

 
$
2.07

Discontinued operations
0.04

 
0.46

 
0.15

 
0.56

Net earnings
$
0.81

 
$
1.10

 
$
2.65

 
$
2.63



As of October 3, 2015, the Company had 2.3 million options outstanding, of which 2.2 million were exercisable.  This compares with 3.1 million options outstanding, of which 2.7 million were exercisable, as of September 27, 2014.  During both the three months and nine months ended October 3, 2015, there were no options outstanding for which the exercise price was greater than the average market price of the Company’s shares for the period then ended. Therefore, there were no anti-dilutive options to exclude from the computation of diluted earnings per common share. This compares to 0.3 million anti-dilutive shares of options outstanding that were excluded from both the three months and nine months ended September 27, 2014. Changes in average outstanding basic shares from September 27, 2014 to October 3, 2015 reflect the impact of options exercised and the vesting of stock and performance awards since the beginning of 2014, net of the impact of common stock repurchases during the fourth quarter of 2014 and first nine months of 2015.