Note 3 – Earnings Per Share and Shareholders’ Equity

Basic earnings per share is computed on the basis of the weighted average number of shares outstanding during the year. Diluted earnings per share includes the dilutive effect of stock options and restricted stock units. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 170,300 and 219,800 in the third fiscal quarter of 2014 and 2013, respectively. Shares used for calculating earnings per share are disclosed in the following table.

(In thousands)	Three Months Ended				Nine Months Ended
	August 1,		July 26,		August 1,		July 26,
	2014		2013		2014		2013
Shares used for basic earnings per share		31,995		31,297		31,818		31,100
Shares used for diluted earnings per share		32,591		31,870		32,427		31,663

Share repurchase program

On June 19, 2014, the Company’s board of directors approved a $200 million share repurchase program. Under the program, the Company is authorized to repurchase up to $200 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. The Company may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. The program does not require the Company to acquire a specific number of shares. Common stock repurchased can be reissued, and accordingly, the Company accounts for repurchased stock under the cost method of accounting.

During the three months ended August 1, 2014, the Company repurchased 45,979 shares under this program at an average price paid per share of $112.57, for an aggregate purchase price of $5.2 million.