EARNINGS PER SHARE

Basic earnings per share is computed by dividing Net income attributable to Trimble Inc. 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 Inc.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, restricted stock units and contingently issuable shares. 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:



	Third Quarter of				First Three Quarters of
	2017		2016		2017		2016
(In millions, except per share amounts)
Numerator:
Net income attributable to Trimble Inc.	$	55.7	$	39.2	$	156.1	$	94.7
Denominator:
Weighted average number of common shares used in basic earnings per share	252.6		249.7		252.5		250.5
Effect of dilutive securities	5.3		3.5		4.5		3.2
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share	257.9		253.2		257.0		253.7
Basic earnings per share	$	0.22	$	0.16	$	0.62	$	0.38
Diluted earnings per share	$	0.22	$	0.15	$	0.61	$	0.37

For the third quarter of fiscal 2017, the shares of outstanding stock options excluded were de minimis. For the third quarter of fiscal 2016, the Company excluded 4.0 million shares of outstanding stock options from the calculation of diluted earnings per share because their effect would have been antidilutive. For the first three quarters of fiscal 2017 and 2016, the Company excluded 0.5 million and 4.5 million shares of outstanding stock options, respectively, from the calculation of diluted earnings per share because their effect would have been antidilutive.