EARNINGS PER COMMON SHARE

9 Months Ended

Oct. 03, 2020

Basic earnings per common share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding. Diluted earnings per common share, if applicable, considers the dilutive effect of common stock equivalents. The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per common share is as follows (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	October 3, 2020		September 28, 2019		October 3, 2020		September 28, 2019
Numerator for Basic and Diluted Earnings Per Common Share
Net income (loss) applicable to common shares	$	30,028	$	24,790	$	(484,658)	$	(17,320)
Denominator for Basic and Diluted Earnings Per Common Share
Weighted average basic number of common shares outstanding	125,100		125,557		125,655		125,526
Common stock equivalents:
Employee stock options	189		1		—		—
PSUs and Performance Share Awards	—		—		—		—
Weighted average diluted number of common shares outstanding	125,289		125,558		125,655		125,526

Basic income (loss) per common share	$	0.24	$	0.20	$	(3.86)	$	(0.14)
Diluted income (loss) per common share	$	0.24	$	0.20	$	(3.86)	$	(0.14)

Incentive Plan securities excluded from dilution(1)	2,146		5,189		3,338		4,974

(1)Represents securities not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive.

We calculate earnings per share using the “two-class” method, whereby unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, these participating securities are treated as a separate class in computing earnings per share. The calculation of earnings per share presented here excludes the income attributable to unvested restricted stock units related to our Incentive Plan from the numerator and excludes the dilutive impact of those shares from the denominator. Awards subject to the achievement of performance conditions or market conditions for which such conditions had been met at the end of any of the fiscal periods presented are included in the computation of diluted earnings per common share if their effect was dilutive.