Earnings Per Share

6 Months Ended

Jul. 01, 2017

Earnings Per Share

Earnings Per Share

Note 4.  Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows:
	Three Months Ended			Six Months Ended
(In thousands)		July 1, 2017	July 2, 2016		July 1, 2017	July 2, 2016
Basic weighted-average shares outstanding		267,114	269,888		268,802	270,774
Dilutive effect of stock options		2,185	1,428		2,274	1,398
Diluted weighted-average shares outstanding		269,299	271,316		271,076	272,172
Stock options to purchase 2 million shares of common stock are excluded from the calculation of diluted weighted-average shares outstanding for both the second quarter and first half of 2017, as their effect would have been anti-dilutive. Stock options to purchase 5 million shares of common stock are excluded from the calculation of diluted weighted-average shares outstanding for both the second quarter and first half of 2016, as their effect would have been anti-dilutive.