EARNINGS PER SHARE

3 Months Ended

Apr. 04, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing Net income attributable to Trimble Navigation Ltd. by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table shows the computation of basic and diluted earnings per share:

	First Quarter of
	2014		2013
(Dollars in thousands, except per share amounts)
Numerator:
Net income attributable to Trimble Navigation Ltd.	$	68,624	$	49,808
Denominator:
Weighted average number of common shares used in basic earnings per share	259,789		255,181
Effect of dilutive securities	4,995		5,118
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share	264,784		260,299
Basic earnings per share	$	0.26	$	0.20
Diluted earnings per share	$	0.26	$	0.19

For the first quarter of fiscal 2014 and 2013, the Company excluded 0.1 million and 2.5 million shares of outstanding stock options, respectively, from the calculation of diluted earnings per share because their effect would have been antidilutive.