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
	April 27, 2019		April 28, 2018
Net income available to common stockholders (numerator)	$	14,279	$	17,231

Weighted-average number of common shares (denominator)	31,451,809		31,190,366

Basic earnings per common share	$	0.45	$	0.55

Weighted-average number of common shares	31,451,809		31,190,366
Potential shares of common stock arising from stock options, and unvested restricted share units	334,650		602,549
Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021⁽¹⁾	—		614,999
Total shares-diluted (denominator)	31,786,459		32,407,914

Diluted earnings per common share	$	0.45	$	0.53

Anti-dilutive weighted shares excluded from the calculation of earnings per common share:
Stock-based awards	266,371		80,847
0.75% convertible senior notes due 2021	5,005,734		4,390,735
Warrants	5,005,734		5,005,734
Total	10,277,839		9,477,316

⁽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 three months ended April 28, 2018, the Company’s average stock price of $110.46 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 period are included in the calculation of diluted earnings per share for the three months ended April 28, 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 14, Debt, for additional information related to the Company’s convertible senior notes, warrant transactions, and hedge transactions.