EARNINGS PER SHARE AVAILABLE TO COMMON SHAREHOLDERS (“EPS”)

6 Months Ended

Jul. 03, 2026

EARNINGS PER SHARE AVAILABLE TO COMMON SHAREHOLDERS (“EPS”)

NOTE C: EARNINGS PER SHARE AVAILABLE TO COMMON SHAREHOLDERS (“EPS”)

EPS is calculated as net income available to common shareholders divided by our weighted-average number of basic or diluted common shares outstanding. Net income available to common shareholders is calculated by reducing net income by the amount of the subsidiary preferred stock deemed dividend associated with the Subsidiary Series A Preferred Stock as it is not a participating security.

Potential dilutive common shares primarily consist of employee stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), Subsidiary Series A Preferred Stock and Subsidiary Warrants. As of July 3, 2026, the Subsidiary Series A Preferred Stock is anti-dilutive and the Subsidiary Warrants are not currently exercisable, therefore both instruments are excluded from the dilutive EPS calculation.

See Note B: Strategic Investment in Subsidiary in these Notes for further information on the subsidiary preferred stock deemed dividend, Subsidiary Series A Preferred Stock and Subsidiary Warrants.

Basic and diluted EPS are calculated as follows:


	Second Quarter				Year to Date
(In millions, except per share amount)	2026		2025		2026		2025

Net income	$	600	$	458	$	1,112	$	844
Subsidiary preferred stock deemed dividend	(14)		—		(14)		—
Net income available to common shareholders	$	586	$	458	$	1,098	$	844

Basic weighted-average common shares outstanding	186.2		187.0		186.5		187.7
Impact of dilutive share-based awards	1.1		0.8		1.2		0.8
Diluted weighted-average common shares outstanding	187.3		187.8		187.7		188.5

Earnings per share available to common shareholders
Basic	$	3.15	$	2.45	$	5.89	$	4.50
Diluted	$	3.13	$	2.44	$	5.85	$	4.48

Anti-dilutive share-based awards excluded from diluted EPS were 0.4 million and 0.5 million for second quarter and year to date 2026, respectively, and 1.0 million and 2.0 million for second quarter and year to date 2025, respectively.