Net Income Per Share

9 Months Ended

Oct. 02, 2011

The following table sets forth the computation of basic and diluted net income per share for the three and nine months ended October 2, 2011 and October 3, 2010.



	Three months ended				Nine months ended
	October 2, 2011		October 3, 2010		October 2, 2011		October 3, 2010
	(In thousands, except per share amounts)
Numerator for basic net income per share:
Net income	$	233,253	$	322,092	$	705,767	$	814,677
Denominator for basic net income per share:
Weighted average common shares outstanding	239,836		233,918		238,720		231,631
Basic net income per share	$	0.97	$	1.38	$	2.96	$	3.52

Numerator for diluted net income per share:
Net income	$	233,253	$	322,092	$	705,767	$	814,677
Interest on the 1% Notes due 2035, net of tax	—		—		—		156
Net income for diluted net income per share	$	233,253	$	322,092	$	705,767	$	814,833
Denominator for diluted net income per share:
Weighted average common shares	239,836		233,918		238,720		231,631
Incremental common shares attributable to exercise of outstanding employee stock options and SARs (assuming proceeds would be used to purchase common stock), and RSUs	3,844		6,799		5,062		7,095
Effect of dilutive 1% Notes due 2035	—		—		—		523
Shares used in computing diluted net income per share	243,680		240,717		243,782		239,249
Diluted net income per share	$	0.96	$	1.34	$	2.90	$	3.41

Anti-dilutive shares excluded from net income per share calculation	71,010		74,746		68,134		75,528

Basic earnings per share exclude any dilutive effects of stock options, SARs, RSUs, warrants and convertible debt. Diluted earnings per share include the dilutive effects of stock options, SARs and RSUs. In addition, diluted earnings per share for the nine months ended October 3, 2010 includes the dilutive effect of the Company’s $75.0 million 1% Convertible Notes due 2035 (“1% Notes due 2035”), which were redeemed in the first quarter of fiscal year 2010. Certain common stock issuable under stock options, SARs, warrants, the 1% Notes due 2013 and the 1.5% Notes due 2017 have been omitted from the diluted net income per share calculation because their inclusion is considered anti-dilutive.