Earnings Per Share

9 Months Ended

Sep. 29, 2019

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



	Three months ended				Nine months ended
	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Net income	$	86,563	$	113,855	$	410,139	$	530,956

Basic weighted-average shares outstanding	156,239		165,927		158,117		166,885
Effect of dilutive securities - employee stock compensation plan	705		737		677		796
Diluted weighted-average shares outstanding	156,944		166,664		158,794		167,681
Earnings per share:
Basic	$	0.55	$	0.69	$	2.59	$	3.18
Diluted	$	0.55	$	0.68	$	2.58	$	3.17

Outstanding options to purchase 1.1 million and 0.8 million shares of common stock for the three months ended September 29, 2019 and September 30, 2018, respectively, and 1.2 million and 1.1 million shares of common stock for the nine months ended September 29, 2019 and September 30, 2018, respectively, were not included in the effect 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 calculations for the three and nine month periods ended September 29, 2019 and September 30, 2018.