Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) per Common Share

 v2.3.0.11
Earnings (Loss) per Common Share
 6 Months Ended
Jul. 02, 2011
Earnings (Loss) per Common Share [Abstract]  
Basic and diluted earnings (loss) 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 stock options and SARs (collectively “options”) and non-vested stock awards.

Basic and diluted earnings per common share for the three months and six months ended July 2, 2011 and for the comparable periods ended July 3, 2010, were calculated as follows:

   
Three Months Ended
    
Six Months Ended
  
(in millions, except per share data)
  
July 2, 2011
    
July 3, 2010
    
July 2, 2011
    
July 3, 2010
  
                         
Net earnings
   $ 69.3     $ 13.7     $ 96.8     $ 0.7  
                                 
Weighted average outstanding shares – basic
     89.3       88.7       89.3       88.6  
Dilutive effect of common stock equivalents
     3.3       3.1       3.2       2.7  
                                 
Weighted average outstanding shares – diluted
     92.6       91.8       92.5       91.3  
                                 
Basic earnings per common share
   $ 0.78     $ 0.15     $ 1.08     $ 0.01  
                                 
Diluted earnings per common share
   $ 0.75     $ 0.15     $ 1.05     $ 0.01  

As of July 2, 2011, the Company had 9.4 million options outstanding, of which 4.9 million were exercisable.  This compares with 10.0 million options outstanding, of which 4.6 million were exercisable, as of July 3, 2010.  During the three months and six months ended July 2, 2011, there were 3.0 million and 2.8 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 3.2 million and 5.2 million anti-dilutive weighted average shares of options outstanding that were excluded from the corresponding periods ended July 3, 2010.