Computation of Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):



	For the Three Months Ended				For the Nine Months Ended
	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Net income available to common stockholders (numerator)	$	27,830	$	28,776	$	74,961	$	111,280

Weighted-average number of common shares (denominator)	31,246,591		31,061,448		31,214,172		31,167,753

Basic earnings per common share	$	0.89	$	0.93	$	2.40	$	3.57

Weighted-average number of common shares	31,246,591		31,061,448		31,214,172		31,167,753
Potential shares of common stock arising from stock options, and unvested restricted share units	587,951		830,126		605,992		654,353
Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021⁽¹⁾	—		—		245,065		—
Total shares-diluted (denominator)	31,834,542		31,891,574		32,065,229		31,822,106

Diluted earnings per common share	$	0.87	$	0.90	$	2.34	$	3.50

Anti-dilutive weighted shares excluded from the calculation of earnings per common share:
Stock-based awards	121,722		125,074		68,395		102,268
0.75% convertible senior notes due 2021	5,005,734		5,005,734		4,760,669		5,005,734
Warrants	5,005,734		5,005,734		5,005,734		5,005,734
Total	10,133,190		10,136,542		9,834,798		10,113,736

⁽¹⁾Under the treasury stock method, the convertible senior notes will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the $96.89 per share conversion price for the convertible senior notes. The warrants associated with the Company’s convertible senior notes will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the $130.43 per share warrant strike price. During the first and second quarters of fiscal 2019, the Company’s average stock price of $110.46 and $99.27, respectively, each exceeded the conversion price for the convertible senior notes. As a result, shares presumed to be issuable under the convertible senior notes that were dilutive during the first and second quarters of fiscal 2019 are included in the calculation of diluted earnings per share for the nine months ended October 27, 2018. As the Company’s average stock price did not exceed the strike price for the warrants, the underlying common shares were anti-dilutive as reflected in the table above.

In connection with the offering of the convertible senior 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 convertible senior notes when the average stock price for the period is above $96.89 per share. See Note 13, Debt, for additional information related to the Company’s convertible senior notes, warrant transactions, and hedge transactions.