Earnings per Share (EPS) and Common Stock

EPS

Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted stock, although legally issued and outstanding, is not considered outstanding for purposes of calculating basic EPS. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and RSUs using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options, unrecognized compensation expense and any tax benefits as additional proceeds.



	Three months ended				Nine months ended
Calculation of Basic and Diluted EPS	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
	(in thousands, except per share data)
Net income	$	34,455	$	22,895	$	87,303	$	48,587
Weighted average shares outstanding—Basic	119,440		119,042		119,628		118,584
Dilutive effect of employee stock options, restricted shares and restricted stock units	1,388		1,686		1,606		2,314
Weighted average shares outstanding—Diluted	120,828		120,728		121,234		120,898
Earnings per share—Basic	$	0.29	$	0.19	$	0.73	$	0.41
Earnings per share—Diluted	$	0.29	$	0.19	$	0.72	$	0.40

Stock options to purchase 0.1 million shares were outstanding during the first nine months of 2012 but were not included in the calculation of diluted EPS because the exercise prices per share were greater than the average market price of our common stock for those periods. These shares were excluded from the computation of diluted EPS as the effect would have been anti-dilutive.

Common Stock Repurchases

Our Articles of Organization authorize us to issue up to 500 million shares of our common stock. Our Board of Directors has authorized us to repurchase up to $100 million worth of shares with cash from operations in the period October 1, 2012 through September 30, 2013. In the third quarter and first nine months of 2013, we repurchased 0.8 million shares and 2.3 million shares at a cost of $20.0 million and $54.9 million, respectively. In the third quarter and first nine months of 2012, we repurchased 1.0 million shares and 1.6 million shares at a cost of $20.0 million and $35.0 million, respectively. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued.