4. Earnings Per Share

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share (“EPS”) for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings. Net earnings used for the purpose of determining basic and diluted earnings per share is determined by taking net earnings, less earnings available to participating securities.

The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in thousands):

	For the Years Ended
	September 29, 2017			September 30, 2016		October 2, 2015
Numerator for Basic and Diluted EPS:
Net income	$	293,727		$	210,463	$	302,971
Net income allocated to participating securities		(3,077	)		—		—
Net income allocated to common stock for EPS calculation	$	290,650		$	210,463	$	302,971

Denominator for Basic and Diluted EPS:
Weighted average basic shares		119,370			120,133		125,007

Effect of dilutive securities:
Stock compensation plans		777			680		481
Restricted stock		1,319			670		622

Diluted shares		121,466			121,483		126,110

Shares allocated to participating securities		(1,319	)		—		—
Shares used for calculating diluted EPS attributable to common stock		120,147			121,483		126,110

Basic EPS	$	2.43		$	1.75	$	2.42
Diluted EPS	$	2.42		$	1.73	$	2.40

Share Repurchases

On July 23, 2015, the Board of Directors approved a share repurchase program to repurchase up to $500 million of the Company's common stock over the ensuing three years (the "2015 Share Repurchase Program"). As authorized, share repurchases may be executed through various means including, without limitation, open market transactions and/or privately negotiated transactions. The 2015 Share Repurchase Program does not obligate the Company to purchase any shares, and expires on July 22, 2018. The timing of shares repurchases may depend upon market conditions, other uses of capital, and other factors.

The following table summarizes the activity under this program during fiscal 2017 (in thousands, except per-share amounts):

Amount

Authorized

(in thousands)

Average

Price Per

Share (1)

Retired

(In thousands)

Shares Repurchased

(In thousands)

500,000

55.60

1,748

(1)

Includes commissions paid and calculated as the average price per share since the repurchase program authorization date.

Dividend Program

On December 1, 2016, the Company announced that the Board of Directors has approved the initiation of a cash dividend program. Quarterly dividends of $0.15 per share were paid in each of the second, third and fourth quarters of fiscal 2017. On September 27, 2017, the Board of Directors declared a quarterly cash dividend of $0.15 per share, which was paid on November 10, 2017. Future dividend payments are subject to review and approval by the Company’s Board of Directors.