Changes in shareholders' equity

6 Months Ended

Jun. 26, 2016

Equity [Abstract]

Changes in shareholders' equity

Note 9 — Changes in shareholders’ equity

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner except that the weighted average number of shares is increased to include dilutive securities. The following table provides a reconciliation of basic to diluted weighted average shares outstanding:

	Three Months Ended		Six Months Ended
	June 26, 2016	June 28, 2015	June 26, 2016	June 28, 2015
	(Shares in thousands)
Basic	43,549	41,560	42,598	41,514
Dilutive effect of share-based awards	566	473	543	470
Dilutive effect of 3.875% Convertible Notes and warrants	3,131	6,048	4,873	5,704
Diluted	47,246	48,081	48,014	47,688

Weighted average shares that were antidilutive and therefore not included in the calculation of earnings per share were 5.0 million and 5.1 million for the three and six months ended June 26, 2016, respectively, and 5.6 million and 5.7 million for the three and six months ended June 28, 2015, respectively.

In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge and warrant agreements. The convertible note hedge, consisting of call options held by the Company, economically reduces the dilutive impact of the Convertible Notes. However, applicable accounting guidance requires the Company to separately address the dilutive impact of the warrants issued under the warrant agreements in computing diluted weighted average shares outstanding, without giving effect to the anti-dilutive impact of the call options. The reduction in the number of diluted shares that would result from giving effect to the anti-dilutive impact of the call options would have been 1.7 million and 2.6 million for the three and six months ended June 26, 2016, respectively, and 3.3 million and 3.2 million for the three and six months ended June 28, 2015, respectively. The treasury stock method is applied to the warrants when the average market price of the Company's common stock during the reporting period presented exceeds the warrant exercise price of $74.65 per share, and assumes the proceeds from the exercise of the warrants are used by the Company to repurchase shares based on such average market price. Shares issuable upon exercise of the warrants that were included in the total diluted shares outstanding were 1.5 million and 2.2 million for the three and six months ended June 26, 2016and 2.7 million and 2.5 million for the three and six months ended June 28, 2015, respectively.

See Note 6 for information regarding the reduction in the outstanding principal amount of Convertible Notes as a result of the Company's exchange of cash and shares of common stock, as well as the conversion of a portion of the Convertible Notes, and the related reduction in the number of call options and warrants outstanding under the convertible note hedge and warrant agreements.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the six months ended June 26, 2016 and June 28, 2015:

	Cash Flow Hedges			Pension and Other Postretirement Benefit Plans			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive (Loss) Income
	(Dollars in thousands)
Balance as of December 31, 2015	$	(2,491	)	$	(138,887	)	$	(229,746	)	$	(371,124	)
Other comprehensive income (loss) before reclassifications	(1,684		)	375			11,285			9,976
Amounts reclassified from accumulated other comprehensive income	2,668			2,109			—			4,777
Net current-period other comprehensive income	984			2,484			11,285			14,753
Balance as of June 26, 2016	$	(1,507	)	$	(136,403	)	$	(218,461	)	$	(356,371	)

	Cash Flow Hedges			Pension and Other Postretirement Benefit Plans			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive (Loss) Income
	(Dollars in thousands)
Balance at December 31, 2014	$	—		$	(141,744	)	$	(119,151	)	$	(260,895	)
Other comprehensive (loss) before reclassifications	(922		)	300			(61,893		)	(62,515		)
Amounts reclassified from accumulated other comprehensive loss	163			2,137			—			2,300
Net current-period other comprehensive (loss) income	(759		)	2,437			(61,893		)	(60,215		)
Balance at June 28, 2015	$	(759	)	$	(139,307	)	$	(181,044	)	$	(321,110	)

The following table provides information relating to the location in the statements of operations and amount of reclassifications of losses/(gains) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three and six months ended June 26, 2016 and June 28, 2015:

	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
	(Dollars in thousands)
Losses on foreign exchange contracts:
Cost of goods sold	$	1,501		$	472		$	3,372		$	263
Total before tax	1,501			472			3,372			263
Tax (benefit) expense	(363		)	(110		)	(704		)	(100		)
Net of tax	$	1,138		$	362		$	2,668		$	163
Amortization of pension and other postretirement benefit items:
Actuarial losses (1)	$	1,620		$	1,605		$	3,242		$	3,211
Prior-service costs(1)	14			—			28			—
Total before tax	1,634			1,605			3,270			3,211
Tax (benefit) expense	(581		)	(564		)	(1,161		)	(1,074		)
Net of tax	$	1,053		$	1,041		$	2,109		$	2,137
Total reclassifications, net of tax	$	2,191		$	1,403		$	4,777		$	2,300

(1) These accumulated other comprehensive (loss) income components are included in the computation of net benefit expense for pension and other postretirement benefit plans (see Note 11 for additional information).