Earnings per Share

9 Months Ended

Sep. 24, 2011

Basic net income per share was computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the additional dilutive effect of our potentially dilutive securities, which include stock options, SOSARs, RSUs, PUs, and DSUs, calculated using the treasury stock method.

The following summarizes the effect of dilutive securities on diluted EPS:



	Thirteen Weeks Ended					Thirty-Nine Weeks Ended
	September 24, 2011		September 25, 2010			September 24, 2011		September 25, 2010
	(In millions)
Amounts attributable to MCBC
Net income (loss) from continuing operations	$	194.7	$	257.0		$	501.6	$	556.8
Income (loss) from discontinued operations, net of tax	2.7		(0.9		)	1.5		41.1
Net income (loss) attributable to MCBC	$	197.4	$	256.1		$	503.1	$	597.9
Weighted average shares for basic EPS	185.0		186.0			186.3		185.7
Effect of dilutive securities:
Options and SOSARs	0.8		0.9			0.9		0.9
RSUs, PUs and DSUs	0.4		0.5			0.6		0.5
Weighted average shares for diluted EPS	186.2		187.4			187.8		187.1
Basic net income (loss) per share:
Continuing operations attributable to MCBC	$	1.05	$	1.39		$	2.69	$	3.00
Discontinued operations attributable to MCBC	0.01		(0.01		)	0.01		0.22
Net income attributable to MCBC	$	1.06	$	1.38		$	2.70	$	3.22
Diluted net income (loss) per share:
Continuing operations attributable to MCBC	$	1.05	$	1.38		$	2.67	$	2.98
Discontinued operations attributable to MCBC	0.01		(0.01		)	0.01		0.22
Net income attributable to MCBC	$	1.06	$	1.37		$	2.68	$	3.20
Dividends declared and paid per share	$	0.32	$	0.28		$	0.92	$	0.80

The following anti-dilutive securities were excluded from the computation of the effect of dilutive securities on diluted earnings per share:



	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 24, 2011	September 25, 2010	September 24, 2011	September 25, 2010
	(In millions)
Stock options, SOSARs and RSUs(1)	1.0	0.7	0.6	0.9
Shares of Class B common stock issuable upon assumed conversion of the 2.5% Convertible Senior Notes(2)	10.8	10.5	10.7	10.5
Warrants to issue shares of Class B common stock(2)	10.8	10.5	10.7	10.5
	22.6	21.7	22.0	21.9


(1)	Exercise prices exceed the average market price of the common shares or are anti-dilutive due to the impact of the unrecognized compensation cost on the calculation of assumed proceeds in the application of the treasury stock method.

(2)

We issued $575 million of senior convertible notes in June 2007. The impact of a net share settlement of the conversion amount at maturity will begin to dilute earnings per share if and when our stock price reaches $53.40. The impact of stock that could be issued to settle share obligations we could have under the warrants we issued simultaneously with the convertible notes issuance will begin to dilute earnings per share when our stock price reaches $68.10. The potential receipt of MCBC stock from counterparties under our purchased call options when and if our stock price is between $53.40 and $68.10 would be anti-dilutive and excluded from any calculations of earnings per share.

We have no outstanding equity share awards that contain non-forfeitable rights to dividends on unvested shares.

In July 2011, the Board of Directors authorized a new program to repurchase up to $1.2 billion of outstanding shares of Class B common stock in the open market or in privately negotiated transactions over an expected term of three years. We purchased a total of 6.3 million shares of our Class B common stock under the share repurchase program in the third quarter of 2011 for $271.1 million. During the third quarter of 2011, our Board of Directors expanded this program to include the repurchase of the Company's Class A common stock. There are fewer Class A shares available to repurchase on the open market, so the repurchases will continue to be primarily of Class B shares.