Earnings Per Share (EPS)

6 Months Ended

Jul. 02, 2011

Earnings Per Share (EPS)

Earnings Per Share (EPS)

12. EARNINGS PER SHARE (EPS)

The numerator for the calculation of basic and diluted earnings per share is Net Income Attributable to Regal Beloit Corporation. The denominator is computed as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Denominator for basic EPS — weighted average		38,667		38,310		38,647		37,878
Effect of dilutive securities		546		644		535		918
Denominator for diluted EPS		39,213		38,954		39,182		38,796

The "Effect of dilutive securities" represents the dilution impact of equity awards and convertible notes that were fully converted during 2010. The dilutive effect of the convertible notes was approximately 0.2 million shares and 0.5 million shares for the three and six months ended July 3, 2010, respectively.

Options for common shares where the exercise price was above the market price at July 2, 2011 and July 3, 2010 totaling approximately 0.4 million and 0.3 million shares have been excluded from the calculation of the effect of dilutive securities as the effect of such options is anti-dilutive.