Earnings Per Share

3 Months Ended

Mar. 27, 2016

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



	Three months ended
	March 27, 2016		March 29, 2015
Numerator:
Net income used in computing basic and diluted earnings per share	$	250,489	$	269,854
Denominator:
Denominator for basic earnings per share - weighted-average common shares	183,429		210,629
Effect of dilutive securities - employee stock compensation plan	775		1,159
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	184,204		211,788
Earnings per common share:
Basic	$	1.37	$	1.28
Diluted	$	1.36	$	1.27

Outstanding options to purchase 1.9 million and 0.7 million shares of common stock for the three months ended March 27, 2016 and March 29, 2015, 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 ended March 27, 2016 and March 29, 2015, respectively.