Income per Common Share

6 Months Ended

Jul. 02, 2011

Income per Common Share [Abstract]

Income per Common Share

Note 17—Income per Common Share

The following table presents the calculation of both basic and diluted income per common share attributable to Warnaco Group common shareholders, giving effect to participating securities. The Company has determined that based on a review of its share-based awards, only its restricted stock awards are deemed participating securities, which participate equally with common shareholders. The weighted average restricted stock outstanding was 640,931 shares and 556,328 shares for the Three Months Ended July 2, 2011 and the Three Months Ended July 3, 2010, respectively, and 646,828 shares and 577,924 shares for the Six Months Ended July 2, 2011 and the Six Months Ended July 3, 2010, respectively. Undistributed income allocated to participating securities is based on the proportion of restricted stock outstanding to the sum of weighted average number of common shares outstanding attributable to Warnaco Group common shareholders and restricted stock outstanding for each period presented below.

	Three Months Ended
	July 2, 2011			July 3, 2010
Numerator for basic and diluted income per common share:
Income from continuing operations attributable to Warnaco Group, Inc. common shareholders and participating securities	$	45,566		$	30,027
Less: allocation to participating securities		(660	)		(371	)
Income from continuing operations attributable to Warnaco Group, Inc. common shareholders	$	44,906		$	29,656
(Loss) from discontinued operations, net of tax, attributable to Warnaco Group, Inc. common shareholders and participating securities	$	(63	)	$	(93	)
Less: allocation to participating securities		1			1
(Loss) from discontinued operations attributable to Warnaco Group, Inc. common shareholders	$	(62	)	$	(92	)
Net income attributable to Warnaco Group, Inc. common shareholders and participating securities	$	45,503		$	29,934
Less: allocation to participating securities		(659	)		(370	)
Net income attributable to Warnaco Group, Inc. common shareholders	$	44,844		$	29,564
Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Weighted average number of common shares outstanding used in computing income per common share		43,622,535			44,468,794
Income per common share from continuing operations	$	1.03		$	0.67
(Loss) per common share from discontinued operations		—			(0.01	)
Net income per common share	$	1.03		$	0.66
Diluted income per share attributable to Warnaco Group, Inc. common shareholders:
Weighted average number of common shares outstanding used in computing basic income per common share		43,622,535			44,468,794
Effect of dilutive securities:
Stock options and restricted stock units		835,838			957,838
Weighted average number of shares and share equivalents used in computing income per common share		44,458,373			45,426,632
Income per common share from continuing operations	$	1.01		$	0.65
(Loss) per common share from discontinued operations		—			—
Net income per common share	$	1.01		$	0.65
Number of anti-dilutive “out-of-the-money” stock options outstanding (a)		3,350			399,034

	Six Months Ended
	July 2, 2011			July 3, 2010
Numerator for basic and diluted income per common share:
Income from continuing operations attributable to Warnaco Group, Inc. common shareholders and participating securities	$	90,098		$	78,339
Less: allocation to participating securities		(1,312	)		(995	)
Income from continuing operations attributable to Warnaco Group, Inc. common shareholders	$	88,786		$	77,344
(Loss) from discontinued operations, net of tax, attributable to Warnaco Group, Inc. common shareholders and participating securities	$	(564	)	$	(430	)
Less: allocation to participating securities		8			5
(Loss) from discontinued operations attributable to Warnaco Group, Inc. common shareholders	$	(556	)	$	(425	)
Net income attributable to Warnaco Group, Inc. common shareholders and participating securities	$	89,534		$	77,909
Less: allocation to participating securities		(1,304	)		(990	)
Net income attributable to Warnaco Group, Inc. common shareholders	$	88,230		$	76,919
Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Weighted average number of common shares outstanding used in computing income per common share		43,757,202			44,943,829
Income per common share from continuing operations	$	2.03		$	1.72
(Loss) per common share from discontinued operations		(0.01	)		(0.01	)
Net income per common share	$	2.02		$	1.71
Diluted income per share attributable to Warnaco Group, Inc. common shareholders:
Weighted average number of common shares outstanding used in computing basic income per common share		43,757,202			44,943,829
Effect of dilutive securities:
Stock options and restricted stock units		941,115			992,667
Weighted average number of shares and share equivalents used in computing income per common share		44,698,317			45,936,496
Income per common share from continuing operations	$	1.99		$	1.68
(Loss) per common share from discontinued operations		(0.02	)		(0.01	)
Net income per common share	$	1.97		$	1.67
Number of anti-dilutive “out-of-the-money” stock options outstanding (a)		332,100			399,034

(a) options to purchase shares of common stock at an exercise price greater than the average market price of the underlying shares are anti-dilutive and therefore not included in the computation of diluted income per common share from continuing operations.