Earnings Per Share

9 Months Ended

Sep. 25, 2016

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 25, 2016		September 27, 2015		September 25, 2016		September 27, 2015
Numerator:
Net income used in computing basic and diluted earnings per share	$	114,065	$	140,347	$	644,985	$	710,011
Denominator:
Denominator for basic earnings per share - weighted-average common shares	178,438		203,598		180,779		207,255
Effect of dilutive securities - employee stock compensation plan	882		982		803		1,027
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	179,320		204,580		181,582		208,282
Earnings per common share:
Basic	$	0.64	$	0.69	$	3.57	$	3.43
Diluted	$	0.64	$	0.69	$	3.55	$	3.41

Outstanding options to purchase 1.2 million and 0.9 million shares of common stock for the three months ended September 25, 2016 and September 27, 2015, respectively, and 1.5 million and 0.9 million shares of common stock for the nine months ended September 25, 2016 and September 27, 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 nine month periods ended September 25, 2016 and September 27, 2015, respectively.