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				Six months ended
	July 1, 2018		June 25, 2017		July 1, 2018		June 25, 2017
Numerator:
Net income used in computing basic and diluted earnings per share	$	242,338	$	258,867	$	417,101	$	445,236
Denominator:
Denominator for basic earnings per share - weighted-average common shares	166,589		174,409		167,364		175,178
Effect of dilutive securities - employee stock compensation plan	615		915		825		992
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	167,204		175,324		168,189		176,170
Earnings per common share:
Basic	$	1.45	$	1.48	$	2.49	$	2.54
Diluted	$	1.45	$	1.48	$	2.48	$	2.53

Outstanding options to purchase 1.5 million and 0.6 million shares of common stock for the three months ended July 1, 2018 and June 25, 2017, respectively, and 1.3 million and 0.7 million shares of common stock for the six months ended July 1, 2018 and June 25, 2017, 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 six month periods ended July 1, 2018 and June 25, 2017.