Earnings Per Share

9 Months Ended

Sep. 27, 2015

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



	Three months ended				Nine months ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Numerator:
Net income used in computing basic and diluted earnings per share	$	140,347	$	150,066	$	710,011	$	770,136
Denominator:
Denominator for basic earnings per share - weighted-average common shares	203,598		215,572		207,255		217,429
Effect of dilutive securities - employee stock compensation plan	982		1,321		1,027		1,409
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	204,580		216,893		208,282		218,838
Earnings per common share:
Basic	$	0.69	$	0.70	$	3.43	$	3.54
Diluted	$	0.69	$	0.69	$	3.41	$	3.52

Outstanding options to purchase 0.9 million and 0.6 million shares of common stock for the three months ended September 27, 2015 and September 28, 2014, respectively, and 0.9 million and 0.5 million shares of common stock for the nine months ended September 27, 2015 and September 28, 2014, 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 and nine month periods ended September 27, 2015 and September 28, 2014, respectively.