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	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(in thousands, except per share data)
Net income	$	17,435	$	38,026	$	53,111	$	121,439
Weighted average shares outstanding—Basic	114,764		118,328		115,021		118,753
Dilutive effect of employee stock options, restricted shares and restricted stock units	1,261		1,573		1,309		1,820
Weighted average shares outstanding—Diluted	116,025		119,901		116,330		120,573
Earnings per share—Basic	$	0.15	$	0.32	$	0.46	$	1.02
Earnings per share—Diluted	$	0.15	$	0.32	$	0.46	$	1.01

RSUs of 0.1 million were outstanding during the first nine 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 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. On August 4, 2014, our Board of Directors authorized us to repurchase up to an additional $600 million of our common stock from August 4, 2014 through September 30, 2017. In the third quarter and first nine months of 2014, respectively, we repurchased 1.6 million and 2.8 million shares at a cost of $60.0 million and $99.9 million. In the third quarter of 2015, we repurchased 1.2 million shares at a cost of $50.0 million. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued.

On August 14, 2014, we entered into an accelerated share repurchase (“ASR”) agreement with a major financial institution (“Bank”). The ASR allowed us to buy a large number of shares immediately at a purchase price determined by an average market price over a period of time. Under the ASR, we agreed to purchase $125 million of our common stock, in total, with an initial delivery to us in August 2014 of 2.3 million shares. We settled the ASR in December 2014 and the Bank delivered to us 1.1 million shares.