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Earnings/(Loss) Per Share
 6 Months Ended
Jun. 29, 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
 
For the Six Months Ended
(In thousands, except per share data)
 
June 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Amounts attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
9,188

 
$
17,356

 
$
11,925

 
$
23,713

Income/(loss) from discontinued operations, net of income taxes
 
—

 
2,775

 
(994
)
 
(10
)
Net income
 
$
9,188

 
$
20,131

 
$
10,931

 
$
23,703

Average number of common shares outstanding–Basic
 
150,796

 
148,797

 
150,683

 
148,754

Incremental shares for assumed exercise of securities
 
11,072

 
7,714

 
11,279

 
7,347

Average number of common shares outstanding–Diluted
 
161,868

 
156,511

 
161,962

 
156,101

Basic earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.06

 
$
0.12

 
$
0.08

 
$
0.16

Income/(loss) from discontinued operations, net of income taxes
 
—

 
0.02

 
(0.01
)
 
—

Net income–Basic
 
$
0.06

 
$
0.14

 
$
0.07

 
$
0.16

Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.06

 
$
0.11

 
$
0.07

 
$
0.15

Income/(loss) from discontinued operations, net of income taxes
 
—

 
0.02

 
(0.01
)
 
—

Net income–Diluted
 
$
0.06

 
$
0.13

 
$
0.06

 
$
0.15


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.
In January 2009, pursuant to a securities purchase agreement, we issued unsecured notes and detachable warrants to purchase 15.9 million shares of our Class A Common Stock at a price of $6.3572 per share. The warrants are exercisable at the holder’s option at any time and from time to time, in whole or in part, until January 15, 2015.
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 6 million in the second quarter and first six months of 2014 and approximately 11 million in the second quarter and first six months of 2013.