Earnings Per Share

6 Months Ended

Jun. 26, 2016

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 26, 2016		June 28, 2015		June 26, 2016		June 28, 2015
Numerator:
Net income used in computing basic and diluted earnings per share	$	280,431	$	299,810	$	530,920	$	569,664
Denominator:
Denominator for basic earnings per share - weighted-average common shares	180,587		207,650		181,976		209,115
Effect of dilutive securities - employee stock compensation plan	752		940		764		1,050
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	181,339		208,590		182,740		210,165
Earnings per common share:
Basic	$	1.55	$	1.44	$	2.92	$	2.72
Diluted	$	1.55	$	1.44	$	2.91	$	2.71

Outstanding options to purchase 1.5 million and 1.0 million shares of common stock for the three months ended June 26, 2016 and June 28, 2015, respectively, and 1.7 million and 0.8 million shares of common stock for the six months ended June 26, 2016 and June 28, 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 and six month periods ended June 26, 2016 and June 28, 2015, respectively.