Earnings (Loss) Per Share

6 Months Ended

Mar. 28, 2020

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) by the daily weighted average number of common shares outstanding during the applicable period. For the three and six months ended March 30, 2019, the tangible equity units (TEUs) were assumed to be settled at the minimum settlement amount of 1.9841 shares per TEU when calculating weighted-average common shares outstanding for purposes of basic earnings (loss) per share.

Using the treasury stock method, diluted earnings (loss) per share includes the potentially dilutive effect of common shares issued in connection with outstanding stock-based compensation options and grants. The potentially dilutive effect of common shares issued in connection with outstanding stock options is determined based on the average market price for the period. For the three and six months ended March 30, 2019 diluted earnings per share, the TEUs were assumed to be settled at a conversion factor based on our daily volume-weighted average price per share of our common stock for the 20 consecutive trading days preceding the end of the current fiscal quarter not to exceed 2.3810 shares of common stock per TEU.

Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution. As a result, stock options to acquire 1,230 and 865 weighted common shares have been excluded from the diluted weighted average common shares outstanding calculation for the three months ended March 28, 2020 and March 30, 2019, respectively. Stock options to acquire 984 and 791 weighted common shares have been excluded from the diluted weighted average common shares outstanding calculation for the six months ended March 28, 2020 and March 30, 2019, respectively.

In connection with the pricing of the TEUs, we purchased capped calls. For the three and six months ended March 30, 2019, the capped calls were not reflected in the calculation of diluted earnings per share as they had not yet settled and, therefore, led to a net reduction in common shares outstanding or anti-dilution. The capped calls were settled in the fourth quarter of fiscal year 2019 in conjunction with the settlement of the TEUs.

Basic and diluted earnings (loss) per share are calculated as follows:



	Three Months Ended					Six Months Ended
	March 28, 2020			March 30, 2019		March 28, 2020		March 30, 2019
Net income (loss)	$	(1,071	)	$	14,160	$	4,235	$	24,661

Weighted average common shares outstanding	19,193			19,251		19,169		19,234
Effect of dilutive securities
Stock-based compensation	168			190		192		159
Weighted average dilutive common shares outstanding	19,361			19,441		19,361		19,393

Earnings (loss) per share
Basic	$	(0.06	)	$	0.74	$	0.22	$	1.28
Diluted	(0.06		)	0.73		0.22		1.27