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 Six Months Ended
	June 29, 2018		June 30, 2017		June 29, 2018		June 30, 2017
In thousands, except per share amounts
Net earnings	$	15,094	$	13,458	$	29,160	$	19,749

Basic:
Weighted average number of shares outstanding	27,971		27,557		27,911		27,351
Basic earnings per share	$	0.54	$	0.49	$	1.04	$	0.72

Diluted:
Weighted average number of shares outstanding	27,971		27,557		27,911		27,351
Weighted average shares issuable on exercise of dilutive stock options	237		141		228		154
Weighted average shares issuable on redemption of convertible notes	108		108		54		628
Weighted average shares issuable on redemption of warrants related to the 2017 Notes	33		36		65		237
Total	28,349		27,842		28,258		28,370

Diluted earnings per share	$	0.53	$	0.48	$	1.03	$	0.70

Equity awards

For the three-month and six-month fiscal periods ended June 29, 2018, respectively, 182,040 and 190,775 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 six-month fiscal periods ended June 30, 2017, respectively, 350,649 and 286,343 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.

14. COMPUTATION OF EARNINGS PER SHARE (CONTINUED)

2017 Convertible Notes

For the three-month and six-month fiscal periods ended June 30, 2017, 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 six-month fiscal periods ended June 29, 2018, shares issuable under the Convertible Notes due 2024 were included in the diluted earnings per share calculation because the conversion price was less than the average market price of the Company's stock during the periods. For the three-month and six-month fiscal periods ended June 30, 2017, shares issuable under the Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because the conversion price was greater than the average market price of the Company's stock during the periods.

Warrants

For the fiscal periods ended June 29, 2018 and June 30, 2017, shares issuable under the warrants issued in connection with the Company's 2017 Notes were included in the calculation for diluted earnings per share as the strike price of the warrants was less than the average price of the Company's stock.