INCOME PER SHARE

9 Months Ended

Oct. 03, 2014

INCOME PER SHARE

INCOME PER SHARE

Basic income per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period. Diluted income per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted income per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table shows the computation of basic and diluted income per share:

	Third Quarter of				First Three Quarters of
	2014		2013		2014		2013
(Dollars in thousands, except per share amounts)
Numerator:
Net income attributable to Trimble Navigation Ltd.	$	11,832	$	54,469	$	158,290	$	158,858
Denominator:
Weighted average number of common shares used in basic income per share	260,329		257,037		260,398		256,135
Effect of dilutive securities	4,090		4,100		4,655		4,529
Weighted average number of common shares and dilutive potential common shares used in diluted income per share	264,419		261,137		265,053		260,664
Basic income per share	$	0.05	$	0.21	$	0.61	$	0.62
Diluted income per share	$	0.04	$	0.21	$	0.60	$	0.61

For the third quarter of fiscal 2014 and 2013, the Company excluded 1.7 million and 3.5 million shares of outstanding stock options, respectively, from the calculation of diluted income per share because their effect would have been antidilutive. For the first three quarters of fiscal 2014 and 2013, the Company excluded 0.5 million and 3.0 million shares of outstanding stock options, respectively, from the calculation of diluted income per share.