7. EARNINGS PER SHARE

We compute Basic and Diluted Earnings Per Share based on the weighted-average number of shares of the Common Stock and the Class B Common Stock outstanding as follows:



	For the Three Months Ended
	April 1, 2012		April 3, 2011
In thousands except per share amounts
Net income	$	198,651	$	160,115
Weighted-average shares - Basic
Common Stock	164,603		166,452
Class B Common Stock	60,631		60,682
Total weighted-average shares - Basic	225,234		227,134
Effect of dilutive securities:
Employee stock options	2,663		2,363
Performance and restricted stock units	758		697
Weighted-average shares - Diluted	228,655		230,194
Earnings Per Share - Basic
Class B Common Stock	$	.82	$	.65
Common Stock	$	.91	$	.72
Earnings Per Share - Diluted
Class B Common Stock	$	.81	$	.65
Common Stock	$	.87	$	.70

The Class B Common Stock is convertible into Common Stock on a share for share basis at any time. The calculation of earnings per share-diluted for the Class B Common Stock was performed using the two-class method and the calculation of earnings per share-diluted for the Common Stock was performed using the if-converted method.

For the three-month period ended April 1, 2012, 3.5 million stock options were not included in the diluted earnings per share calculation because the effect would have been antidilutive. In the first quarter of 2011, 6.9 million stock options were not included in the diluted earnings per share calculation because the effect would have been antidilutive.