Earnings Per Share

6 Months Ended

Jun. 28, 2015

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



	Three months ended				Six months ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
Numerator:
Net income used in computing basic and diluted earnings per share	$	299,810	$	354,153	$	569,664	$	620,070
Denominator:
Denominator for basic earnings per share - weighted-average common shares	207,650		217,762		209,115		218,367
Effect of dilutive securities - employee stock compensation plan	940		1,399		1,050		1,453
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	208,590		219,161		210,165		219,820
Earnings per common share:
Basic	$	1.44	$	1.63	$	2.72	$	2.84
Diluted	$	1.44	$	1.62	$	2.71	$	2.82

Outstanding options to purchase 1.0 million and 0.4 million shares of common stock for the three months ended June 28, 2015 and June 29, 2014, respectively and 0.8 million and 0.5 million shares of common stock for the six months ended June 28, 2015 and June 29, 2014 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 and six month periods ended June 28, 2015 and June 29, 2014, respectively.