Computation of Net Income per Share

6 Months Ended

Jul. 01, 2012

Computation of Net Income per Share

Note 3 – Computation of Net Income per Share

Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential future issuances of common stock relating to potentially dilutive securities. There is no dilution when a net loss exists. Potentially dilutive common equivalent securities consist of stock options, performance units (PUs), deferred stock units (DSUs) and restricted stock units (RSUs). In calculating diluted earnings per share, the dilutive effect of stock options is computed using the average market price for the respective period using the treasury share method. Certain potential shares of the company’s outstanding stock options were excluded because they were anti-dilutive, but could be dilutive in the future. The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended				Six Months Ended
	July 1, 2012		June 26, 2011		July 1, 2012		June 26, 2011
	(In millions, except per share data)
Basic:
Net income	$	11.9	$	44.9	$	13.5	$	88.4
Weighted average shares outstanding		126.9		127.9		126.6		127.0
Net income per share	$	0.09	$	0.35	$	0.11	$	0.70
Diluted:
Net income	$	11.9	$	44.9	$	13.5	$	88.4
Basic weighted average shares outstanding		126.9		127.9		126.6		127.0
Assumed exercise of common stock equivalents		1.8		3.8		2.5		4.3
Diluted weighted average common and common equivalent shares		128.7		131.7		129.1		131.3
Net income per share	$	0.09	$	0.34	$	0.10	$	0.67
Anti-dilutive common stock equivalents, non-vested stock, DSUs, RSUs, and PUs		3.6		4.3		4.7		4.6