Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

v3.20.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 28, 2019
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
The computation of basic and diluted earnings per share ("EPS") is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. On May 22, 2019, the Separation from VF was effected through a pro-rata distribution of one share of the Company's common stock for every seven shares of VF common stock held at the close of business on the record date of May 10, 2019. As a result, on May 23, 2019, the Company had 56,647,561 shares of common stock outstanding. This share amount was utilized for the calculation of basic and diluted earnings per share for all periods presented through the Separation date. After the Separation date, actual outstanding shares are used to calculate both basic and diluted weighted average number of common shares outstanding.
The following table presents the computation of basic and diluted EPS:
 
Year Ended December
 
 
 
 
 
 
 
 
(In thousands, except per share amounts)
 
2019
 
 
2018
 
2017
Net income
 
$
96,654

 
 
$
263,073

 
$
116,191

Basic weighted average shares outstanding
 
56,688

 
 
56,648

 
56,648

Dilutive effect of stock-based awards
 
521

 
 
—

 
—

Diluted weighted average shares outstanding
 
57,209

 
 
56,648

 
56,648

Earnings per share:
 
 
 
 
 
 
 
Basic earnings per share
 
$
1.71

 
 
$
4.64

 
$
2.05

Diluted earnings per share
 
$
1.69

 
 
$
4.64

 
$
2.05


A total of 0.1 million shares related to stock-based awards were excluded from the calculation of diluted earnings per share in 2019 because the effect of their inclusion would have been anti-dilutive. A total of 0.3 million shares related to performance-based RSUs were excluded from the calculations of diluted earnings per share in 2019 because these units were not considered to be contingent outstanding shares.