Net Income Per Common Share

6 Months Ended

Jun. 30, 2012

Net Income Per Common Share

Note 5 – Net Income Per Common Share

Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is calculated using the weighted-average number of common shares outstanding adjusted to include the effect, if dilutive, of the exercise of in-the-money stock options, Performance-based RSUs and Time-based RSUs.

A reconciliation of the denominators of the basic and diluted net income per common share computations is as follows:

	For the Three Months Ended				For the Six Months Ended
(in thousands of shares)	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Weighted average number of shares outstanding - basic		94,469		94,137		94,448		94,107
Dilutive effect of Stock options		31		196		31		195
Dilutive effect of Performance-based RSUs		30		509		21		481
Dilutive effect of Time-based RSUs		985		687		979		641
Adjusted weighted average number of shares outstanding - diluted		95,515		95,529		95,479		95,424

We excluded 183,500 (July 2, 2011 – 241,000) stock options from the computation of diluted net income per share because the options’ exercise price was greater than the average market price of the common shares. Shares purchased on the open market and held by independent trusts are categorized as treasury shares under applicable accounting rules. We excluded 674,397 (July 2, 2011 –674,397) treasury shares held in various trusts in the calculation of basic and diluted earnings per share.