COMPUTATION OF EARNINGS PER SHARE

The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each period. The computation of diluted earnings per share reflects the common stock equivalency of dilutive options granted to employees under the Stock Incentive Plan and shares issuable on redemption of Convertible Notes.



	For the Three Months Ended				For the Nine Months Ended
	September 27, 2013		September 28, 2012		September 27, 2013		September 28, 2012
In thousands, except per share amounts
Earnings from continuing operations	$	18,695	$	14,784	$	43,741	$	39,994
Earnings from discontinued operations, net of tax	64		198		64		870
Gain on disposal of discontinued operations, net of tax	420		—		420		—
Net earnings	$	19,179	$	14,982	$	44,225	$	40,864

Basic:
Weighted average number of shares outstanding	26,770		26,455		26,721		26,380

Earnings per share from continuing operations	$	0.70	$	0.56	$	1.64	$	1.52
Earnings per share from discontinued operations	—		0.01		—		0.03
Earnings per share from disposal of discontinued operations	0.02		—		0.02		—
Basic earnings per share	$	0.72	$	0.57	$	1.66	$	1.55
Diluted:
Weighted average number of shares outstanding	26,770		26,455		26,721		26,380
Weighted average shares issuable on exercise of dilutive stock options	164		168		156		160
Weighted average shares issuable on redemption of convertible notes	299		—		185		—
Total	27,233		26,623		27,062		26,540

Earnings per share from continuing operations	$	0.68	$	0.55	$	1.61	$	1.51
Earnings per share from discontinued operations	—		0.01		—		0.03
Earnings per share from disposal of discontinued operations	0.02		—		0.02		—
Diluted earnings per share	$	0.70	$	0.56	$	1.63	$	1.54

13. COMPUTATION OF EARNINGS PER SHARE (CONTINUED)

Excluded from the diluted earnings per share calculation for the three and nine months ended September 27, 2013, respectively, are 405,505 and 429,541 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price during those periods. Excluded from the diluted earnings per share calculation for the three and nine months ended September 28, 2012, respectively, are 336,893 and 351,103 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price during those periods.

In November 2010, the Company issued Convertible Notes due on November 15, 2017, in the aggregate principal amount of $115.0 million. The Convertible Notes will mature on November 15, 2017, unless earlier redeemed, repurchased by the Company or converted. Upon conversion, the Convertible Notes require net share settlement, where the aggregate principal amount of the notes will be paid in cash and remaining amounts due, if any, will be settled in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election.

For the three-month and nine-month periods ended September 27, 2013, shares issuable under the Convertible Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the Convertible Notes was less than the average share price of the Company's stock. Shares issuable under the Convertible Notes were excluded from the diluted earnings per share calculation for the three-month and nine-month periods ended September 28, 2012, because the conversion price was greater than the average market price of the Company's stock during those periods. Excluded from the diluted earnings per share calculation for the three and nine months ended September 27, 2013, are 3,405,585 and 3,403,710 shares, respectively, issuable under the warrants sold in connection with the Company’s convertible note offering as they would be anti-dilutive. Excluded from the diluted earnings per share calculation for the three and nine months ended September 28, 2012, are 3,397,902 and 3,395,861 shares, respectively, issuable under the warrants sold in connection with the Company’s convertible note offering as they would be anti-dilutive.