Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

v2.4.0.6
Earnings per Common Share
 9 Months Ended
Sep. 29, 2012
Earnings Per Share [Abstract]  
Earnings per Common Share
Note 6 – 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 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 29, 2012, and for the comparable periods ended October 1, 2011, were calculated as follows:
 
Three Months Ended
 
Nine Months Ended
(in millions, except per share data)
September 29,
2012
 
October 1,
2011
 
September 29,
2012
 
October 1,
2011
Net earnings
$
2.0

 
$
4.7

 
$
125.3

 
$
101.5

 
 
 
 
 
 
 
 
Weighted average outstanding shares – basic
89.8

 
89.4

 
89.7

 
89.3

Dilutive effect of common stock equivalents
2.7

 
2.4

 
2.6

 
3.0

Weighted average outstanding shares – diluted
92.5

 
91.8

 
92.3

 
92.3

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.02

 
$
0.05

 
$
1.40

 
$
1.14

 
 
 
 
 
 
 
 
Diluted earnings per common share
$
0.02

 
$
0.05

 
$
1.36

 
$
1.10



As of September 29, 2012, the Company had 8.4 million options outstanding, of which 5.7 million were exercisable.  This compares with 9.4 million options outstanding, of which 4.8 million were exercisable, as of October 1, 2011.  During the three months and nine months ended September 29, 2012, there were 2.2 million and 2.3 million weighted average shares of options outstanding, respectively, for which the exercise price, based on the average 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 4.7 million and 2.9 million anti-dilutive weighted average shares of options outstanding that were excluded from the corresponding periods ended October 1, 2011.