Computation of Earnings Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share Reconciliation [Abstract]

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 Company's stock incentive plan and shares issuable on redemption of its Convertible Notes.



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2016		October 2, 2015		September 30, 2016		October 2, 2015
In thousands, except per share amounts
Net earnings	$	17,455	$	17,224	$	43,727	$	51,664

Basic:
Weighted average number of shares outstanding	27,128		27,179		27,096		27,203
Basic earnings per share		$0.64		$0.63		$1.61		$1.90

Diluted:
Weighted average number of shares outstanding	27,128		27,179		27,096		27,203
Weighted average shares issuable on exercise of dilutive stock options	140		119		138		136
Weighted average shares issuable on redemption of convertible notes	810		472		708		576
Weighted average shares issuable on redemption of warrants	2		—		1		—
Total	28,080		27,770		27,943		27,915

Diluted earnings per share		$0.62		$0.62		$1.56		$1.85

Equity awards

For the three-month and nine-month fiscal periods ended September 30, 2016, respectively, 483,556 and 561,297 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. For the three-month and nine-month fiscal periods ended October 2, 2015, respectively, 507,917 and 488,868 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period.

12. COMPUTATION OF EARNINGS PER SHARE (CONTINUED)

Convertible Notes

For the three-month and nine-month fiscal periods ended September 30, 2016, and October 2, 2015, respectively, shares issuable under the Convertible Notes discussed in Note 9, Debt 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.

Warrants

Excluded from the diluted earnings per share calculation for the three-month and nine-month fiscal periods ended September 30, 2016, are 3,435,712 and 3,433,632, respectively, shares 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-month and nine-month fiscal periods ended October 2, 2015, are 3,424,229 and 3,420,743, respectively, shares issuable under the warrants sold in connection with the Company’s convertible note offering as they would be anti-dilutive.