to diluted net earnings per share for its fiscal first quarter ended April 3, 2016. Fiscal First Quarter Ended (in millions) Net earnings, basic..... April 3, 2016 $4,292 Average shares outstanding - basic........ Potential shares exercisable under stock option plans ........ Shares which could be repurchased under treasury stock method. Convertible debt shares. 2,757.2 144.4 108.2 2.0 Required a. Compute basic EPS for the quarter ended April 3, 2016. b. Determine the total number of shares added to the diluted EPS calculation from stock option plans. c. Compute diluted EPS for the quarter ended April 3, 2016. d. Assess whether the results for parts a, b and c suggest a major potential dilution risk for existing common shareholders. Warranty Footnote Disclosure Product Warranty-Estimated warranty costs are reserved for motorcycles, motorcycle parts and motorcycle accessories at the time of sale. The warranty reserve is based upon historical Company claim data used in combination with other known factors that may affect future warranty claims. The Company updates its warranty estimates quarterly to ensure that the warranty reserves are based on the most current information available ... The Company maintains reserves for future warranty claims using an estimated cost, which are based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall cam- paigns. The Company reserves for all estimated costs associated with recalls in the period that management approves and commits to the recall Changes in the Company's warranty and recall liability were as follows (in thousands): 2015 Harley-Davidson's warranty footnote Balance, beginning of period ........ Warranties issued during the period .... Settlements made during the period .... Recalls and changes to pre-existing warranty liabilities ... Balance, end of period..... $69,250 59,259 (96,529) 42,237 $74,217 2014 $64,120 60,331 (74,262) 19,061 $69,250 2013 $60,263 59,022 (64,462) 9,297 $64,120