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Earnings Per Share

Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows:


	Three Months Ended
	2011						2010
	Earnings		Shares		Per-Share		Earnings		Shares		Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share:
Income available to common shareholders	$	72,044		168,299	$	0.43	$	55,477		164,669	$	0.34
Effect of dilutive securities:
Stock options and non-vested restricted stock		—		5,292				—		6,004

Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	72,044		173,591	$	0.42	$	55,477		170,673	$	0.33

Options to purchase 2.2 million and 1.2 million shares of common stock at per share prices ranging from $38.99 to $60.62 and $29.11 to $43.35 were outstanding at July 2, 2011 and July 3, 2010, respectively, but were not included in the computation of diluted earnings per share because the options were anti-dilutive. In addition, the computation of diluted earnings per share does not include 0.2 million performance based non-vested stock awards outstanding as of July 2, 2011, as all necessary conditions of such contingently issuable shares have not been satisfied.


	Six Months Ended
	2011						2010
	Earnings		Shares		Per-Share		Earnings		Shares		Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share:
Income available to common shareholders	$	136,600		167,706	$	0.81	$	105,763		164,291	$	0.64
Effect of dilutive securities:
Stock options and non-vested restricted stock		—		5,422				—		6,156

Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	136,600		173,128	$	0.79	$	105,763		170,447	$	0.62

Options to purchase 1.8 million and 0.8 million shares of common stock at per share prices ranging from $38.06 to $60.62 and $29.11 to $43.35 were outstanding for the six months ended July 2, 3011 and July 3, 2010, respectively, but were not included in the computation of diluted earnings per share because the options were anti-dilutive. In addition, the computation of diluted earnings per share does not include 0.2 million performance based non-vested stock awards outstanding as of July 2, 2011, as all necessary conditions of such contingently issuable shares have not been satisfied.