Earnings Per Share (EPS)

9 Months Ended

Oct. 01, 2011

Earnings Per Share (EPS) [Abstract]

Earnings Per Share (EPS)

12. EARNINGS PER SHARE (EPS)

The numerator for the calculation of basic and diluted earnings per share is Net Income Attributable to Regal Beloit Corporation. The denominator is computed as follows:

	Three Months Ended				Nine Months Ended
	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Denominator for basic EPS—weighted average		39,931,610		38,581,166		39,075,118		38,112,515
Effect of dilutive securities		490,049		441,969		573,367		763,463
Denominator for diluted EPS		40,421,659		39,023,135		39,648,485		38,875,978

The "Effect of dilutive securities" represents the dilution impact of equity awards and convertible notes that were fully converted during 2010. The dilutive effect of the convertible notes was approximately 0.3 million shares for the nine months ended October 2, 2010.

For the three months ended October 1, 2011 and October 2, 2010, the Company had approximately 0.6 million and 0.3 million shares where the exercise price was above the market price, which were excluded from the calculation of the effect dilutive shares as the effect of such options was anti-dilutive. Options for common shares where the exercise price was above the market price for the nine months ended October 1, 2011 and October 2, 2010 totaling approximately 1.3 million and 1.0 million shares have been excluded from the calculation of the effect of dilutive securities as the effect of such options is anti-dilutive.