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				Six months ended
Calculation of Basic and Diluted EPS	March 29, 2014		March 30, 2013		March 29, 2014		March 30, 2013
	(in thousands, except per share data)
Net income	$	43,756	$	17,037	$	83,413	$	52,848
Weighted average shares outstanding—Basic	118,978		119,518		118,973		119,722
Dilutive effect of employee stock options, restricted shares and restricted stock units	1,720		1,553		1,943		1,716
Weighted average shares outstanding—Diluted	120,698		121,071		120,916		121,438
Earnings per share—Basic	$	0.37	$	0.14	$	0.70	$	0.44
Earnings per share—Diluted	$	0.36	$	0.14	$	0.69	$	0.44

RSUs totaling 0.2 million were outstanding during the first six months of 2014 but were not included in the calculation of diluted EPS because the share impact of the assumed proceeds related to the weighted unamortized compensation expense exceeded the weighted average RSUs outstanding. These RSUs 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, 2013 through September 30, 2014. In the second quarter and first six months of 2014, we repurchased 1.1 million shares at a cost of $40.0 million. In the second quarter and first six months of 2013, we repurchased 0.8 million shares and 1.5 million shares at a cost of $19.1 million and $34.9 million, respectively. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued.