Earnings Per Share

6 Months Ended

Dec. 28, 2014

Earnings Per Share [Abstract]

Earnings Per Share

3. Earnings Per Share

Basic earnings per share is calculated using the weighted average shares of common stock (including unvested restricted stock) outstanding during the period.  Diluted earnings per share is calculated using the weighted average shares of common stock outstanding, the dilutive effect of stock options, calculated using the treasury stock method and the dilutive effect of the conversion premium related to the Convertible Senior Notes.  The following table sets forth the reconciliation of weighted average common shares outstanding used in the computation of basic and diluted earnings per share:

		Three Months Ended			Six Months Ended
	December 28,		December 29,			December 28,		December 29,
In thousands, except per share amounts	2014		2013			2014		2013
Numerator-net income	$	123,602	$	104,751	$	253,061	$	212,619
Denominator for basic earnings
per share-weighted average shares		244,033		239,206		244,067		238,857
Effect of dilutive securities-
employee stock options		558		1,147		607		1,143
Effect of dilutive securities-
convertible senior notes		—		317		—		—
Denominator for diluted earnings
per share		244,591		240,670		244,674		240,000
Basic earnings per share	$	0.51	$	0.44	$	1.04	$	0.89
Diluted earnings per share	$	0.51	$	0.44	$	1.03	$	0.89

For the quarter and six months ended December 28, 2014, there were no out-of-the-money stock options that had to be excluded from the weighted average diluted common shares outstanding.  There was no dilutive effect from the conversion premium in the calculation of diluted earnings per common shares for the current fiscal year as a result of the extinguishment of the Convertible Senior Notes at the end of fiscal year 2014. 

The weighted average diluted common shares outstanding for the quarter and six months ended December 29, 2013 excludes the effect of 0.6 million and 1.5 million, respectively, out-of-the-money stock options, that if included would be anti-dilutive.  In the quarter ended December 29, 2013, the Company included the dilutive effect from the conversion premium related to the convertible senior notes in the calculation of diluted earnings per common share because the average per share market price of the Company’s common stock was above the conversion price during the quarter.  The conversion premium was not included in the calculation of diluted earnings per common share for the six months ended December 29, 2013 because the average per share market price was below the conversion price during the period.