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. 02, 2021

The calculations 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.

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)		2021		2020			2021		2020
Net income		$	63,413	$	60,785		$	151,513	$	24,811
Basic weighted average shares outstanding		57,648		57,007			57,535		56,938
Dilutive effect of stock-based awards		1,634		635			1,645		731
Diluted weighted average shares outstanding		59,282		57,642			59,180		57,669
Earnings per share:
Basic earnings per common share		$	1.10	$	1.07		$	2.63	$	0.44
Diluted earnings per common share		$	1.07	$	1.05		$	2.56	$	0.43

For the three and nine months ended September 2021, there were an immaterial number of anti-dilutive shares that were excluded from the dilutive earnings per share calculation. A total of 1.6 million and 1.1 million of potentially dilutive shares were excluded from the diluted earnings per share calculation for the three and nine months ended September 2020, respectively, because the effect of their inclusion would have been anti-dilutive.

For the three and nine months ended September 2021, respectively, a total of 0.4 million and 0.3 million shares 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 both the three and nine months ended September 2020, a total of 0.4 million shares of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.