Computation of Earnings Per Share

9 Months Ended

Sep. 29, 2017

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, shares issuable on redemption of its convertible notes and shares issuable upon redemption of outstanding warrants.



	For the Three Months Ended				For the Nine Months Ended
	September 29, 2017		September 30, 2016		September 29, 2017		September 30, 2016
In thousands, except per share amounts
Net earnings	$	16,280	$	17,455	$	36,029	$	43,727

Basic:
Weighted average number of shares outstanding	27,907		27,128		27,536		27,096
Basic earnings per share	$	0.58	$	0.64	$	1.31	$	1.61

Diluted:
Weighted average number of shares outstanding	27,907		27,128		27,536		27,096
Weighted average shares issuable on exercise of dilutive stock options	148		140		152		138
Weighted average shares issuable on redemption of 2017 Notes	117		810		457		708
Weighted average shares issuable on redemption of warrants related to the 2017 Notes	47		2		174		1
Total	28,219		28,080		28,319		27,943

Diluted earnings per share	$	0.58	$	0.62	$	1.27	$	1.56

12. COMPUTATION OF EARNINGS PER SHARE (CONTINUED)

Equity awards

For the three-month and nine-month fiscal periods ended September 29, 2017, respectively, 230,272 and 267,653 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 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.

2017 Convertible Notes

For the three-month and nine-month fiscal periods ended September 29, 2017, and September 30, 2016, respectively, shares issuable under the 2017 Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the 2017 Notes was less than the average share price of the Company's stock.

2024 Convertible Notes

For the three-month and nine-month fiscal periods ended September 29, 2017, shares issuable under the 2024 Notes were excluded from the diluted earnings per share calculation because the conversion price was greater than the average market price of our stock during the periods.

Warrants

Excluded from the diluted earnings per share calculation for the three-month and nine-month fiscal periods ended September 29, 2017, were 298,264 and 1,204,410, respectively, shares issuable under the warrants sold in connection with the Company's 2017 Notes as they would be anti-dilutive. Excluded from the diluted earnings per share calculation for the three-month and nine-month fiscal periods ended September 30, 2016, were 3,435,712 and 3,433,632, respectively, shares issuable under the warrants sold in connection with the Company’s 2017 Notes as they would be anti-dilutive.