EARNINGS PER SHARE

3 Months Ended

Apr. 01, 2016

Basic earnings per share is computed by dividing Net income attributable to Trimble Navigation Limited by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing Net income attributable to Trimble Navigation Limited 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 restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings 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 earnings per share:



	First Quarter of
	2016		2015
(In millions, except per share amounts)
Numerator:
Net income attributable to Trimble Navigation Limited	$	19.8	$	34.1
Denominator:
Weighted-average shares outstanding	251.0		259.4
Effect of dilutive securities	3.0		3.0
Weighted-average dilutive shares outstanding	254.0		262.4
Basic earnings per share	$	0.08	$	0.13
Diluted earnings per share	$	0.08	$	0.13

For the first quarter of fiscal 2016 and 2015, the Company excluded 5.5 million and 5.0 million shares of outstanding stock options, respectively, from the calculation of diluted earnings per share because their effect would have been antidilutive.