Computation of Earnings Per Common Share

3 Months Ended

Oct. 24, 2015

Computation of Earnings Per Common Share

Computation of Earnings per Common Share

The table below sets forth the computation of basic and diluted earnings per common share. Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the weighted average number of common shares outstanding during the period and dilutive potential common shares arising from the Company's stock-based awards, senior convertible notes and warrants if their inclusion is dilutive under the treasury stock method. Common stock equivalents related to stock-based awards, senior convertible notes and warrants are excluded from diluted earnings per common share calculations if their effect would be anti-dilutive.



	For the Three Months Ended
	October 24, 2015		October 25, 2014
	(Dollars in thousands, except per share amounts)
Net income available to common stockholders (numerator)	$	30,824	$	20,807

Weighted-average number of common shares (denominator)	32,871,240		34,010,147

Basic earnings per common share	$	0.94	$	0.61

Weighted-average number of common shares	32,871,240		34,010,147
Potential shares of common stock arising from stock options, and unvested restricted share units	1,015,507		1,107,526
Total shares-diluted (denominator)	33,886,747		35,117,673

Diluted earnings per common share	$	0.91	$	0.59

The weighted-average number of common shares outstanding used in the computation of diluted earnings per common share does not include the effect of the following instruments because their inclusion would have been anti-dilutive:



	For the Three Months Ended
	October 24, 2015	October 25, 2014
Stock-based awards	40,536	570,749
0.75% senior convertible notes due 2021*	5,005,734	—
Warrants*	5,005,734	—
Total anti-dilutive weighted shares excluded from the calculation of earnings per common share	10,052,004	570,749

*See Note 10, Debt, for additional information related to the Company's senior convertible notes and warrant transactions.

Under the treasury stock method, the senior convertible notes will have a dilutive impact on earnings per common share if the Company's average stock price for the period exceeds the conversion price for the senior convertible notes of $96.89 per share. The warrants will have a dilutive impact on earnings per common share if the Company's average stock price for the period exceeds the warrant strike price of $130.43 per share. As the Company's average stock price for the quarter ended October 24, 2015 was below the conversion price for the senior convertible notes and the warrants, the underlying common shares were anti-dilutive as reflected above.

In connection with the offering of the senior convertible notes, the Company entered into convertible note hedge transactions with counterparties for the purpose of reducing the potential dilution to common stockholders from the conversion of the notes and offsetting any potential cash payments in excess of the principal amount of the notes. Prior to conversion, the convertible note hedge is not included for purposes of the calculation of earnings per common share, as its effect would be anti-dilutive. Upon conversion, the convertible note hedge is expected to offset the dilutive effect of the senior convertible notes when the stock price is above $96.89 per share. See Note 10, Debt, for additional information related to the Company's convertible note hedge.