16. EARNINGS (LOSS) PER SHARE

We compute basic earnings (loss) 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 (loss) per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings (loss) per share of Class B common stock does not assume the conversion of those shares.

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



	Three Months Ended
	July 3, 2016					July 5, 2015
	Common Stock		Class B Common Stock			Common Stock			Class B Common Stock
Basic earnings (loss) per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)	$	88,615	$	32,129		$	84,795		$	29,461
Allocation of undistributed earnings (loss)	18,528		6,684			(159,094		)	(55,103		)
Total earnings (loss)—basic	$	107,143	$	38,813		$	(74,299	)	$	(25,642	)

Denominator (shares in thousands):
Total weighted-average shares—basic	152,774		60,620			158,993			60,620

Earnings (Loss) Per Share—basic	$	0.70	$	0.64		$	(0.47	)	$	(0.42	)

Diluted earnings (loss) per share:
Numerator:
Allocation of total earnings (loss) used in basic computation	$	107,143	$	38,813		$	(74,299	)	$	(25,642	)
Reallocation of total earnings (loss) as a result of conversion of Class B common stock to Common stock	38,813		—			(25,642		)	—
Reallocation of undistributed loss	—		(36		)	—			—
Total earnings (loss)—diluted	$	145,956	$	38,777		$	(99,941	)	$	(25,642	)

Denominator (shares in thousands):
Number of shares used in basic computation	152,774		60,620			158,993			60,620
Weighted-average effect of dilutive securities (1):
Conversion of Class B common stock to Common shares outstanding	60,620		—			60,620			—
Employee stock options	973		—			—			—
Performance and restricted stock options	137		—			—			—
Total weighted-average shares—diluted	214,504		60,620			219,613			60,620

Earnings (Loss) Per Share—diluted	$	0.68	$	0.64		$	(0.47	)	$	(0.42	)


(1)	For the three months ended July 5, 2015, dilutive securities are not included as they are antidilutive in the calculation of earnings per share-diluted when calculated based on a net loss.

The earnings per share calculations for the three months ended July 3, 2016 and July 5, 2015 excluded 3,601 and 4,175, respectively, of stock options that would have been antidilutive.



	Six Months Ended
	July 3, 2016					July 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)	$	178,882	$	64,257		$	170,041		$	58,922
Allocation of undistributed earnings (loss)	97,737		34,912			(62,568		)	(21,599		)
Total earnings—basic	$	276,619	$	99,169		$	107,473		$	37,323

Denominator (shares in thousands):
Total weighted-average shares—basic	154,283		60,620			159,520			60,620

Earnings Per Share—basic	$	1.79	$	1.64		$	0.67		$	0.62

Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation	$	276,619	$	99,169		$	107,473		$	37,323
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock	99,169		—			37,323			—
Reallocation of undistributed (loss) earnings	—		(191		)	—			179
Total earnings—diluted	$	375,788	$	98,978		$	144,796		$	37,502

Denominator (shares in thousands):
Number of shares used in basic computation	154,283		60,620			159,520			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	989		—			1,514			—
Performance and restricted stock options	162		—			281			—
Total weighted-average shares—diluted	216,054		60,620			221,935			60,620

Earnings Per Share—diluted	$	1.74	$	1.63		$	0.65		$	0.62

The earnings per share calculations for the six months ended July 3, 2016 and July 5, 2015 excluded 3,680 and 2,660, respectively, of stock options that would have been antidilutive.