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:



	Second Quarter of				First Two Quarters of
	2018		2017		2018		2017
			*As Adjusted				*As Adjusted
(In millions, except per share amounts)
Numerator:
Net income attributable to Trimble Inc.	$	64.1	$	47.3	$	122.6	$	97.1
Denominator:
Weighted average number of common shares used in basic earnings per share	249.5		253.0		249.1		252.5
Effect of dilutive securities	2.7		4.1		3.6		4.0
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share	252.2		257.1		252.7		256.5
Basic earnings per share	$	0.26	$	0.19	$	0.49	$	0.38
Diluted earnings per share	$	0.25	$	0.18	$	0.49	$	0.38

* See Note 2 for a summary of adjustments

For the second quarter and the first two quarters of fiscal 2018 and 2017, the Company excluded insignificant shares of outstanding stock options from the calculation of diluted earnings per share because their effect would have been antidilutive.