Computation of Earnings Per Share

6 Months Ended

Jul. 01, 2022

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 Six Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
In thousands, except per share amounts
Net earnings	$	4,064	$	11,856	$	8,092	$	19,840

Basic:
Weighted average number of shares outstanding	28,005		27,867		27,977		27,841
Basic earnings per share	$	0.15	$	0.43	$	0.29	$	0.71

Diluted(1):
Weighted average number of shares outstanding	28,005		27,867		27,977		27,841
Weighted average shares issuable on exercise of dilutive stock options	54		46		94		49
Total	28,059		27,913		28,071		27,890

Diluted earnings per share	$	0.14	$	0.42	$	0.29	$	0.71

(1)As a result of the adoption of ASU 2020-06, the Company began calculating diluted earnings per share using the if-converted method for its convertible debt instruments in 2022. Prior to the adoption, the Company calculated diluted earnings per share for its convertible debt instruments using the treasury stock method. The Company adopted ASU 2020-06 using the modified retrospective approach; therefore, prior period results have not been retroactively adjusted. Refer to Note 2, Recent Accounting Standards, for further information on the adoption of ASU 2020-06.

Equity awards

For the three-month and six-month fiscal periods ended July 1, 2022, respectively, 720,540 and 682,971 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 periods. For the three-month and six-month fiscal periods ended July 2, 2021, respectively, 482,339 and 461,649 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 periods.

2024 Convertible Notes

For the three-month and six-month fiscal periods ended July 1, 2022, 3,056,879 shares issuable under Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because their effect was antidilutive. For the three-month and six-month fiscal period ended July 2, 2021, shares issuable under the Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because the conversion price was more than the average market price of the Company's stock during the periods.