EARNINGS PER COMMON SHARE

3 Months Ended

Apr. 03, 2021

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
		April 3, 2021		April 4, 2020
Numerator for Basic and Diluted Earnings Per Common Share
Net loss applicable to common shares		$	(1,655)	$	(542,073)
Denominator for Basic and Diluted Earnings Per Common Share
Weighted average basic number of common shares outstanding		125,506		126,093
Common stock equivalents:
Employee stock options		—		—
PSUs and Performance Share Awards		—		—
Weighted average diluted number of common shares outstanding		125,506		126,093

Basic loss per common share		$	(0.01)	$	(4.30)
Diluted loss per common share		$	(0.01)	$	(4.30)

Incentive Plan securities excluded from dilution(1)		1,174		2,851

(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 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.