Earnings Per Share

6 Months Ended

Jun. 30, 2019

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
	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
Net income	$	195,631	$	242,338	$	323,576	$	417,101

Basic weighted-average shares outstanding	158,813		166,589		159,061		167,364
Effect of dilutive securities - employee stock compensation plan	612		615		664		825
Diluted weighted-average shares outstanding	159,425		167,204		159,725		168,189
Earnings per common share:
Basic	$	1.23	$	1.45	$	2.03	$	2.49
Diluted	$	1.23	$	1.45	$	2.03	$	2.48

Outstanding options to purchase 1.2 million and 1.5 million shares of common stock for the three months ended June 30, 2019 and July 1, 2018, respectively, and 1.2 million and 1.3 million shares of common stock for the six months ended June 30, 2019 and July 1, 2018, 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 June 30, 2019 and July 1, 2018.