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

Sep. 28, 2019

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:



	Three Months Ended September				Nine Months Ended September

(in thousands, except per share amounts)	2019		2018		2019		2018
Net income	$	14,502	$	71,018	$	67,901	$	211,172
Basic weighted average shares outstanding	56,694		56,648		56,663		56,648
Dilutive effect of stock-based awards	707		—		326		—
Diluted weighted average shares outstanding	57,401		56,648		56,989		56,648
Earnings per share:
Basic earnings per share	$	0.26	$	1.25	$	1.20	$	3.73
Diluted earnings per share	0.25		1.25		1.19		3.73

Anti-dilutive stock-based awards excluded from diluted calculation	323		—		164		—

A total of 0.5 million shares of performance-based RSUs were excluded from the calculation of diluted earnings per share for both the three and nine-month periods ended September 2019 as the units were not considered to be contingent outstanding shares.