Shareholders' equity

9 Months Ended

Oct. 01, 2017

Equity [Abstract]

Shareholders' equity

Note 10 — 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 number of common shares outstanding:

	Three Months Ended		Nine Months Ended
	October 1, 2017	September 25, 2016	October 1, 2017	September 25, 2016
	(Shares in thousands)
Basic	45,035	44,045	44,975	43,081
Dilutive effect of share-based awards	934	639	873	574
Dilutive effect of 3.875% Convertible Notes and warrants (1)	618	2,762	825	4,169
Diluted	46,587	47,446	46,673	47,824

(1) The reduction in the dilutive effect of the Convertible Notes and warrants during the three and nine months ended October 1, 2017 as compared to three and nine months ended September 25, 2016 is due principally to the Company’s repurchase of Convertible Notes and conversions by holders of the Convertible Notes.

The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 0.6 million for the three and nine months ended October 1, 2017 and 1.4 million and 3.9 million for the three and nine months ended September 25, 2016, 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 reduced 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 number of common shares outstanding, without giving effect to the anti-dilutive impact of the call options. The reduction in the weighted average number of diluted shares that would result from giving effect to the anti-dilutive impact of the call options would have been 0.1 millionand 0.4 millionfor the three and nine months ended October 1, 2017, respectively, and 1.5 millionand2.3 million for the three and nine months ended September 25, 2016, respectively. The treasury stock method is applied to the warrants because the average market price of the Company's common stock during the reporting periods 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 0.5 millionfor the three and nine months ended October 1, 2017 and 1.3 millionand1.9 million for the three and nine months ended September 25, 2016, respectively.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the nine months ended October 1, 2017 and September 25, 2016:

	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, 2016	$	(2,424	)	$	(136,596	)	$	(299,697	)	$	(438,717	)
Other comprehensive income (loss) before reclassifications	3,383			(1,050		)	156,012			158,345
Amounts reclassified from accumulated other comprehensive income	1,535			3,387			—			4,922
Net current-period other comprehensive income	4,918			2,337			156,012			163,267
Balance as of October 1, 2017	$	2,494		$	(134,259	)	$	(143,685	)	$	(275,450	)

	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, 2015	$	(2,491	)	$	(138,887	)	$	(229,746	)	$	(371,124	)
Other comprehensive (loss) before reclassifications	(2,255		)	618			11,131			9,494
Amounts reclassified from accumulated other comprehensive loss	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 at September 25, 2016	$	(1,730	)	$	(134,973	)	$	(219,447	)	$	(356,150	)

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 October 1, 2017 and September 25, 2016:

	Three Months Ended						Nine Months Ended
	October 1, 2017			September 25, 2016			October 1, 2017			September 25, 2016
	(Dollars in thousands)
(Gains) losses on foreign exchange contracts:
Cost of goods sold	$	(1,179	)	$	535		$	1,769		$	3,907
Total before tax	(1,179		)	535			1,769			3,907
Taxes (benefit)	237			(187		)	(234		)	(891		)
Net of tax	$	(942	)	$	348		$	1,535		$	3,016
Amortization of pension and other postretirement benefit items:
Actuarial losses (1)	$	1,723		$	1,829		$	5,176		$	5,071
Prior-service costs(1)	20			15			79			43
Total before tax	1,743			1,844			5,255			5,114
Tax benefit	(619		)	(657		)	(1,868		)	(1,818		)
Net of tax	$	1,124		$	1,187		$	3,387		$	3,296
Total reclassifications, net of tax	$	182		$	1,535		$	4,922		$	6,312

(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).

Mezzanine Equity

As of December 31, 2016, the Company reclassified $1.8 million from additional paid-in capital to convertible notes in the mezzanine equity section of the Company's consolidated balance sheet. The reclassified amount represents the aggregate difference between the principal amount and the carrying value of the Convertible Notes purchased by the Company pursuant to the Exchange Transactions (see "3.875% Convertible Senior Subordinated Notes - Exchange Transactions" within Note 7) under agreements that were entered into prior to December 31,2016, but not consummated until January 5, 2017. No reclassification was required as of October 1, 2017.