Earnings Per Share

6 Months Ended

Jun. 25, 2017

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):



	Three months ended				Six months ended
	June 25, 2017		June 26, 2016		June 25, 2017		June 26, 2016
Numerator:
Net income used in computing basic and diluted earnings per share	$	258,867	$	280,431	$	445,236	$	530,920
Denominator:
Denominator for basic earnings per share - weighted-average common shares	174,409		180,587		175,178		181,976
Effect of dilutive securities - employee stock compensation plan	915		752		992		764
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding	175,324		181,339		176,170		182,740
Earnings per common share:
Basic	$	1.48	$	1.55	$	2.54	$	2.92
Diluted	$	1.48	$	1.55	$	2.53	$	2.91

Outstanding options to purchase 0.6 million and 1.5 million shares of common stock for the three months ended June 25, 2017 and June 26, 2016, respectively, and 0.7 million and 1.7 million shares of common stock for the six months ended June 25, 2017 and June 26, 2016, respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive.

The Company has a share-based compensation plan under which employees may be granted share-based awards including restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three and six month periods ended June 25, 2017 and June 26, 2016.