Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

v3.5.0.2
Earnings per Common Share
 9 Months Ended
Oct. 01, 2016
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 as well as certain vested, unissued equity awards during the period. Diluted earnings per common share is calculated similarly, except that the calculation includes the dilutive effect of stock-settled SARs, non-vested stock awards and performance awards.

Basic and diluted earnings per common share for the three months and nine months ended October 1, 2016 and October 3, 2015 were calculated as follows:
 
Three Months Ended
 
Nine Months Ended
(in millions, except per share data)
October 1,
2016
 
October 3,
2015
 
October 1,
2016
 
October 3,
2015
Net earnings from continuing operations
$
85.3

 
$
72.2

 
$
256.6

 
$
236.4

Earnings from discontinued operations, net of tax
0.1

 
3.7

 
1.7

 
14.3

Net earnings
$
85.4

 
$
75.9

 
$
258.3

 
$
250.7

 
 
 
 
 
 
 
 
Weighted average outstanding shares – basic
91.1

 
92.7

 
91.5

 
93.3

Dilutive effect of common stock equivalents
0.8

 
1.3

 
0.9

 
1.2

Weighted average outstanding shares – diluted
91.9

 
94.0

 
92.4

 
94.5

 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.94

 
$
0.78

 
$
2.80

 
$
2.54

Discontinued operations
0.00

 
0.04

 
0.02

 
0.15

Net earnings
$
0.94

 
$
0.82

 
$
2.82

 
$
2.69

 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.93

 
$
0.77

 
$
2.78

 
$
2.50

Discontinued operations
0.00

 
0.04

 
0.02

 
0.15

Net earnings
$
0.93

 
$
0.81

 
$
2.80

 
$
2.65



As of October 1, 2016, the Company had 1.2 million SARs outstanding and exercisable. This compares with 2.3 million SARs outstanding, of which 2.2 million were exercisable, as of October 3, 2015. During both the three months and nine months ended October 1, 2016 and October 3, 2015, there were no SARs 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 non-dilutive SARs to exclude from the computation of diluted earnings per common share. Changes in average outstanding basic shares from October 3, 2015 to October 1, 2016 reflect the impact of common stock repurchases throughout 2015 and the first nine months of 2016, net of the impact of SARs exercised and the vesting of stock and performance awards since the beginning of 2015.