EARNINGS PER SHARE

3 Months Ended

Apr. 03, 2016

EARNINGS PER SHARE

We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. With respect to dividend rights, the Common Stock holders are entitled to cash dividends 10% higher than those declared and paid on the Class B common stock. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares.

We compute basic and diluted earnings per share based on the weighted-average number of shares of Common Stock and Class B common stock outstanding as follows:



	Three Months Ended
	April 3, 2016					April 5, 2015
	Common Stock		Class B Common Stock			Common Stock		Class B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)	$	90,238	$	32,129		$	84,920	$	29,461
Allocation of undistributed earnings	79,376		28,089			97,066		33,290
Total earnings—basic	$	169,614	$	60,218		$	181,986	$	62,751

Denominator (shares in thousands):
Total weighted-average shares—basic	155,675		60,620			160,024		60,620

Earnings Per Share—basic	$	1.09	$	0.99		$	1.14	$	1.04

Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation	$	169,614	$	60,218		$	181,986	$	62,751
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock	60,218		—			62,751		—
Reallocation of undistributed earnings	—		(158		)	—		(318		)
Total earnings—diluted	$	229,832	$	60,060		$	244,737	$	62,433

Denominator (shares in thousands):
Number of shares used in basic computation	155,675		60,620			160,024		60,620
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding	60,620		—			60,620		—
Employee stock options	1,005		—			1,687		—
Performance and restricted stock options	187		—			388		—
Total weighted-average shares—diluted	217,487		60,620			222,719		60,620

Earnings Per Share—diluted	$	1.06	$	0.99		$	1.10	$	1.03

The earnings per share calculations for the three months ended April 3, 2016 and April 5, 2015 excluded 3,680 and 2,545, respectively, of stock options that would have been antidilutive.