Computation of Earnings Per Common Share (Tables)

9 Months Ended

Oct. 26, 2019

Schedule of Earnings Per Share Reconciliation

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 26, 2019		October 27, 2018		October 26, 2019		October 27, 2018
Net income available to common stockholders (numerator)	$	24,229	$	27,830	$	68,404	$	74,961

Weighted-average number of common shares (denominator)	31,502,543		31,246,591		31,480,759		31,214,172

Basic earnings per common share	$	0.77	$	0.89	$	2.17	$	2.40

Weighted-average number of common shares	31,502,543		31,246,591		31,480,759		31,214,172
Potential shares of common stock arising from stock options, and unvested restricted share units	324,302		587,951		330,746		605,992
Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021⁽¹⁾	—		—		—		245,065
Total shares-diluted (denominator)	31,826,845		31,834,542		31,811,505		32,065,229

Diluted earnings per common share	$	0.76	$	0.87	$	2.15	$	2.34

Anti-dilutive weighted shares excluded from the calculation of earnings per common share:
Stock-based awards	239,540		121,722		256,269		68,395
0.75% convertible senior notes due 2021⁽¹⁾	5,005,734		5,005,734		5,005,734		4,760,669
Warrants⁽¹⁾	5,005,734		5,005,734		5,005,734		5,005,734
Total	10,251,008		10,133,190		10,267,737		9,834,798

⁽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. The Company’s average stock price did not exceed the per share conversion price during the three or nine months ended October 26, 2019; therefore, there was no dilutive impact on earnings per common share for these periods. 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 per share conversion price. 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 nine months ended October 27, 2018. 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. As the Company’s average stock price did not exceed the strike price for the warrants for any of the periods presented, the underlying common shares were anti-dilutive as reflected in the table above.