Earnings Per Share

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



	Three months ended				Nine months ended
	September 24, 2017		September 25, 2016		September 24, 2017		September 25, 2016
Numerator:
Net income used in computing basic and diluted earnings per share	$	68,209	$	114,065	$	513,445	$	644,985
Denominator:
Denominator for basic earnings per share - weighted-average common shares	169,850		178,438		173,362		180,779
Effect of dilutive securities - employee stock compensation plan	838		882		941		803
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	170,688		179,320		174,303		181,582
Earnings per common share:
Basic	$	0.40	$	0.64	$	2.96	$	3.57
Diluted	$	0.40	$	0.64	$	2.95	$	3.55

Outstanding options to purchase 0.9 million and 1.2 million shares of common stock for the three months ended September 24, 2017 and September 25, 2016, respectively, and 0.8 million and 1.5 million shares of common stock for the nine months ended September 24, 2017 and September 25, 2016, 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 restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, 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 24, 2017 and September 25, 2016.