Earnings Per Share

9 Months Ended

Sep. 28, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Note 12 - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share):

	Fiscal quarter ended				Nine fiscal months ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
Numerator:
Numerator for basic earnings per share:
Net earnings attributable to VPG stockholders	$	1,466	$	1,942	$	3,163	$	6,526
Adjustment to the numerator for net earnings:
Interest savings assuming conversion of
dilutive exchangeable notes, net of tax		4		7		13		24
Numerator for diluted earnings per share:
Net earnings attributable to VPG stockholders	$	1,470	$	1,949	$	3,176	$	6,550
Denominator:
Denominator for basic earnings per share:
Weighted average shares		13,734		13,371		13,504		13,366
Effect of dilutive securities:
Exchangeable notes		181		441		355		441
Employee stock options		1		-		1		1
Restricted stock units		28		81		80		73
Dilutive potential common shares		210		522		436		515
Denominator for diluted earnings per share:
Adjusted weighted average shares		13,944		13,893		13,940		13,881
Basic earnings per share attributable to VPG
stockholders	$	0.11	$	0.15	$	0.23	$	0.49
Diluted earnings per share attributable to VPG
stockholders	$	0.11	$	0.14	$	0.23	$	0.47

Effective August 28, 2013, a holder of the Company's exchangeable notes exercised its option to exchange approximately $5.9 million principal amount of the notes for 259,687 shares of VPG common stock. Following this transaction, VPG has outstanding exchangeable unsecured notes with a principal amount of approximately $4.1 million, which are exchangeable for an aggregate of 181,537 shares of VPG common stock. This transaction has no effect on the calculation of the weighted average shares outstanding used for computing diluted earnings per share because the Company's earnings per share computation assumes that the exchangeable unsecured notes would be converted.

Diluted earnings per share for the periods presented do not reflect the following weighted average potential common shares, as the effect would be antidilutive (in thousands):

	Fiscal quarter ended		Nine fiscal months ended
	September 28,	September 29,	September 28,	September 29,
	2013	2012	2013	2012
Weighted average employee stock options	23	28	23	28
Weighted average warrants	-	630	-	630

The warrants expired on December 13, 2012. The warrants were antidilutive in the prior year through the expiration date.