Earnings Per Share

6 Months Ended

Jul. 03, 2016

EARNINGS PER SHARE

We compute basic earnings per share (EPS) using net earnings for the period and the weighted average number of common shares outstanding during the period. Basic weighted average shares outstanding have decreased throughout 2016 and 2015 due to share repurchases. See Note J for additional details of our share repurchases. Diluted EPS incorporates the additional shares issuable upon the assumed exercise of stock options and the release of restricted stock and restricted stock units (RSUs). The dilutive effect of stock options and restricted stock/RSUs increased because of the adoption of ASU 2016-09 during the second quarter of 2016. See Note A for additional detail of our adoption of this accounting standard.

Basic and diluted weighted average shares outstanding were as follows (in thousands):



	Three Months Ended		Six Months Ended
	July 3, 2016	July 5, 2015	July 3, 2016	July 5, 2015
Basic weighted average shares outstanding	304,470	326,153	306,199	327,653
Dilutive effect of stock options and restricted stock/RSUs*	5,738	5,273	5,610	5,396
Diluted weighted average shares outstanding	310,208	331,426	311,809	333,049

* Excludes outstanding options to purchase shares of common stock because these options had exercise prices in excess of the average market price of our common stock during the period and therefore the effect of including these options would be antidilutive. These options totaled 4,664 and 3,792 for the three- and six-month periods ended July 3, 2016, and 2,091 and 1,387 for the three- and six-month periods ended July 5, 2015, respectively.