Changes in shareholders' equity

9 Months Ended

Sep. 25, 2016

Equity [Abstract]

Changes in shareholders' equity

Note 10 — 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		Nine Months Ended
	September 25, 2016	September 27, 2015	September 25, 2016	September 27, 2015
	(Shares in thousands)
Basic	44,045	41,597	43,081	41,542
Dilutive effect of share-based awards	639	511	574	483
Dilutive effect of 3.875% Convertible Notes and warrants	2,762	6,424	4,169	5,944
Diluted	47,446	48,532	47,824	47,969

Weighted average shares that were antidilutive and therefore not included in the calculation of earnings per share were 1.4 million and 3.9 million for the three and nine months ended September 25, 2016, respectively, and 5.4 million and 5.6 million for the three and nine months ended September 27, 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 1.5 million and 2.3 million for the three and nine months ended September 25, 2016, respectively, and 3.5 million and 3.3 million for the three and nine months ended September 27, 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 1.3 million and 1.9 millionfor the three and nine months ended September 25, 2016and 2.9 million and 2.6 million for the three and nine months ended September 27, 2015, respectively.

See Note 7 for information regarding the reduction in the outstanding principal amount of Convertible Notes as a result of the Company's acquisition of Convertibles Notes in exchange for cash and shares of Company 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 nine months ended September 25, 2016 and September 27, 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	(2,255		)	618			11,131			9,494
Amounts reclassified from accumulated other comprehensive income	3,016			3,296			—			6,312
Net current-period other comprehensive income	761			3,914			11,131			15,806
Reclassification related to acquisition of noncontrolling interest	—			—			(832		)	(832		)
Balance as of September 25, 2016	$	(1,730	)	$	(134,973	)	$	(219,447	)	$	(356,150	)

	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	(2,599		)	465			(91,137		)	(93,271		)
Amounts reclassified from accumulated other comprehensive loss	1,110			3,157			—			4,267
Net current-period other comprehensive (loss) income	(1,489		)	3,622			(91,137		)	(89,004		)
Balance at September 27, 2015	$	(1,489	)	$	(138,122	)	$	(210,288	)	$	(349,899	)

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 nine months ended September 25, 2016 and September 27, 2015:

	Three Months Ended						Nine Months Ended
	September 25, 2016			September 27, 2015			September 25, 2016			September 27, 2015
	(Dollars in thousands)
Losses on foreign exchange contracts:
Cost of goods sold	$	535		$	1,168		$	3,907		$	1,431
Total before tax	535			1,168			3,907			1,431
Tax benefit	(187		)	(221		)	(891		)	(321		)
Net of tax	$	348		$	947		$	3,016		$	1,110
Amortization of pension and other postretirement benefit items:
Actuarial losses (1)	$	1,829		$	1,571		$	5,071		$	4,782
Prior-service costs(1)	15			—			43			—
Total before tax	1,844			1,571			5,114			4,782
Tax benefit	(657		)	(551		)	(1,818		)	(1,625		)
Net of tax	$	1,187		$	1,020		$	3,296		$	3,157
Total reclassifications, net of tax	$	1,535		$	1,967		$	6,312		$	4,267

(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 12 for additional information).