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Earnings Per Share
 6 Months Ended
Jul. 01, 2012
Earnings Per Share

13. Earnings Per Share

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

 

     Three months ended      Six months ended  
     July 1,      June 26,      July 1,      June 26,  
     2012      2011      2012      2011  

Numerator:

            

Income from continuing operations used in computing basic and diluted earnings per share

    $ 247,250       $ 190,580       $ 419,285       $ 309,840   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator:

            

Denominator for basic earnings per share- weighted-average common shares

      228,838         234,336         228,914         234,086   

Effect of dilutive securities—employee stock compensation plan

      2,085         1,832         2,190         1,958   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator for diluted earnings per share- adjusted weighted-average shares outstanding

      230,923         236,168         231,104         236,044   
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings per common share from continuing operations:

            

Basic

    $ 1.08       $ 0.81       $ 1.83       $ 1.32   

Diluted

    $ 1.07       $ 0.81       $ 1.81       $ 1.31   

Outstanding options to purchase 2.1 million and 4.1 million shares of common stock for the three months ended July 1, 2012 and June 26, 2011, respectively, and 2.3 million and 3.7 million shares of common stock for the six months ended July 1, 2012 and June 26, 2011, 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 ending July 1, 2012 and June 26, 2011, respectively.