Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

v2.4.0.8
Earnings per Common Share
 9 Months Ended
Sep. 27, 2014
Earnings Per Share [Abstract]  
Earnings per Common Share
Note 8 – 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 September 27, 2014 and September 28, 2013, were calculated as follows:
 
Three Months Ended
 
Nine Months Ended
(in millions, except per share data)
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
Net earnings from continuing operations
$
61.0

 
$
57.2

 
$
197.2

 
$
178.1

Net earnings from discontinued operations, net of tax
43.4

 
0.6

 
52.8

 
9.9

Net earnings
$
104.4

 
$
57.8

 
$
250.0

 
$
188.0

 
 
 
 
 
 
 
 
Weighted average outstanding shares – basic
93.7

 
91.3

 
93.5

 
91.0

Dilutive effect of common stock equivalents
1.5

 
2.7

 
1.6

 
2.7

Weighted average outstanding shares – diluted
95.2

 
94.0

 
95.1

 
93.7

 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.65

 
$
0.63

 
$
2.11

 
$
1.96

Discontinued operations
0.46

 
0.00

 
0.56

 
0.11

Net earnings
$
1.11

 
$
0.63

 
$
2.67

 
$
2.07

 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.64

 
$
0.61

 
$
2.07

 
$
1.90

Discontinued operations
0.46

 
0.00

 
0.56

 
0.11

Net earnings
$
1.10

 
$
0.61

 
$
2.63

 
$
2.01



As of September 27, 2014, the Company had 3.1 million options outstanding, of which 2.7 million were exercisable.  This compares with 6.2 million options outstanding, of which 4.9 million were exercisable, as of September 28, 2013.  During both the three months and nine months ended September 27, 2014, there were 0.3 million average shares of options outstanding for which the exercise price was greater than the average market price of the Company’s shares for the period then ended.  These options were not included in the computation of diluted earnings per common share because the effect would have been anti-dilutive. This compares to 0.9 million anti-dilutive shares of options outstanding that were excluded from both the three months and nine months ended September 28, 2013. Changes in average outstanding basic shares from September 28, 2013 to September 27, 2014, reflect the impact of options exercised and the vesting of stock and performance awards since the beginning of 2013.