Kontoor Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

9 Months Ended

Oct. 01, 2022

The calculations of basic and diluted earnings per share ("EPS") are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively.

The following table presents the calculations of basic and diluted EPS:


	Three Months Ended September					Nine Months Ended September

(In thousands, except per share amounts)		2022		2021			2022		2021
Net income		$	51,083	$	63,413		$	193,888	$	151,513
Basic weighted average shares outstanding		55,428		57,648			55,830		57,535
Dilutive effect of stock-based awards		1,122		1,634			1,230		1,645
Diluted weighted average shares outstanding		56,550		59,282			57,060		59,180
Earnings per share:
Basic earnings per common share		$	0.92	$	1.10		$	3.47	$	2.63
Diluted earnings per common share		$	0.90	$	1.07		$	3.40	$	2.56

For the three and nine months ended September 2022 and September 2021, an immaterial number of anti-dilutive shares was excluded from the dilutive earnings per share calculation.

For the three and nine months ended September 2022, a total of 0.4 million and 0.3 million shares, respectively, of performance-based restricted stock units ("PRSUs") were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. For the three and nine months ended September 2021, a total of 0.4 million and 0.3 million shares, respectively, of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.