Kontoor Brands, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 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:


	Year Ended December

(In thousands, except per share amounts)		2022		2021		2020
Net income		$	245,493	$	195,423	$	67,923
Basic weighted average shares outstanding		55,744		57,394		56,994
Dilutive effect of stock-based awards		1,218		1,692		864
Diluted weighted average shares outstanding		56,962		59,086		57,858
Earnings per share:
Basic earnings per share		$	4.40	$	3.40	$	1.19
Diluted earnings per share		$	4.31	$	3.31	$	1.17

For the years ended December 2022 and December 2021, an immaterial number of shares were excluded from the dilutive earnings per share calculations because the effect of their inclusion would have been anti-dilutive. A total of 0.8 million shares related to stock-based awards were excluded from the diluted earnings per share calculation for the year ended December 2020 because the effect of their inclusion would have been anti-dilutive.

For the years ended December 2022, December 2021 and December 2020, a total of 0.3 million, 0.2 million and 0.4 million shares of PRSUs, respectively, were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.