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Earnings/(Loss) Per Share
 3 Months Ended
Mar. 30, 2014
Earnings Per Share [Abstract]  
Earnings/(Loss) Per Share
EARNINGS/(LOSS) PER SHARE

The two-class method is an earnings allocation method for computing earnings/(loss) per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. This method determines earnings/(loss) per share based on dividends declared on common stock and participating securities (i.e. distributed earnings), as well as participation rights of participating securities in any undistributed earnings.
Basic and diluted earnings/(loss) per share have been computed as follows:
 
 
For the Quarters Ended
 
(In thousands, except per share data)
 
March 30,
2014
 
March 31,
2013
 
Amounts attributable to The New York Times Company common stockholders:
 
 
 
 
 
Income from continuing operations
 
$
2,737

 
$
6,357

 
Loss from discontinued operations, net of income taxes
 
(994
)
 
(2,785
)
 
Net income
 
$
1,743

 
$
3,572

 
Average number of common shares outstanding–Basic
 
150,612

 
148,710

 
Incremental shares for assumed exercise of securities
 
11,308

 
6,560

 
Average number of common shares outstanding–Diluted
 
161,920

 
155,270

 
Basic earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
Income from continuing operations
 
$
0.02

 
$
0.04

 
Loss from discontinued operations, net of income taxes
 
(0.01
)
 
(0.02
)
 
Net income–Basic
 
$
0.01

 
$
0.02

 
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
Income from continuing operations
 
$
0.02

 
$
0.04

 
Loss from discontinued operations, net of income taxes
 
(0.01
)
 
(0.02
)
 
Net income–Diluted
 
$
0.01

 
$
0.02

 

The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. Our warrants, restricted stock units and stock options could have the most significant impact on diluted shares.
Securities that could potentially be dilutive are excluded from the computation of diluted earnings per share when a loss from continuing operations exists or when the exercise price exceeds the market value of our Class A Common Stock, because their inclusion would have an anti-dilutive effect on per share amounts.
The number of stock options that were excluded from the computation of diluted earnings per share, because they were anti-dilutive, was approximately 7 million in the first quarter of 2014 and 11 million in the first quarter of 2013.