Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

Earnings Per Share

The following table sets forth the computation for basic and diluted earnings per share (in thousands, except per share amounts):

	Three months ended
	March 31, 2013		April 1, 2012
Numerator:
Net income used in computing basic and diluted earnings per share	$	224,129	$	172,035
Denominator:
Denominator for basic earnings per share- weighted-average common shares	224,429		228,988
Effect of dilutive securities—employee stock compensation plan	1,719		2,296
Denominator for diluted earnings per share- adjusted weighted-average shares outstanding	226,148		231,284
Earnings per common share
Basic	$	1.00	$	0.75
Diluted	$	0.99	$	0.74

Outstanding options to purchase 1.4 million and 2.4 million shares of common stock for the three months endedMarch 31, 2013 and April 1, 2012, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive.

The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three month periods ending March 31, 2013 and April 1, 2012, respectively.