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Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share
Earnings Per Share
The following table sets forth the computation for basic and diluted earnings per share from continuing operations (in thousands, except per share amounts):
 
 
Three months ended
 
Nine months ended
 
September 30,
2012
 
September 25,
2011
 
September 30,
2012
 
September 25,
2011
Numerator:
 
 
 
 
 
 
 
Income from continuing operations used in computing basic and diluted earnings per share
$
134,001

 
$
183,594

 
$
553,286

 
$
493,434

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share- weighted-average common shares
226,020

 
233,800

 
227,953

 
233,989

Effect of dilutive securities—employee stock compensation plan
1,969

 
2,061

 
2,117

 
1,992

Denominator for diluted earnings per share- adjusted weighted-average shares outstanding
227,989

 
235,861

 
230,070

 
235,981

Earnings per common share from continuing operations:
 
 
 
 
 
 
 
Basic
$
0.59

 
$
0.79

 
$
2.43

 
$
2.11

Diluted
$
0.59

 
$
0.78

 
$
2.40

 
$
2.09


Outstanding options to purchase 2.2 million and 3.8 million shares of common stock for the three months ended September 30, 2012 and September 25, 2011, respectively, and 2.3 million and 3.7 million shares of common stock for the nine months ended September 30, 2012 and September 25, 2011, 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 shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and 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 nine month periods ending September 30, 2012 and September 25, 2011, respectively.