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		Six Months Ended
	July 1, 2018	July 2, 2017	July 1, 2018	July 2, 2017
	(Shares in thousands)
Basic	45,581	44,996	45,455	44,945
Dilutive effect of share-based awards	—	866	1,052	843
Dilutive effect of convertible notes and warrants	—	956	264	928
Diluted	45,581	46,818	46,771	46,716

The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 2.0 million (inclusive of 1.2 million potentially dilutive shares that were excluded because of the net loss for the three months ended July 1, 2018) and 0.7 million for the three and six months ended July 1, 2018, respectively, and 0.7 million and 0.6 million for the three and six months ended July 2, 2017, respectively.

In connection with the issuance by the Company in 2010 of convertible notes that matured in August 2017, and as part of hedging arrangements between the Company and two institutional counterparties, the Company issued warrants to the counterparties, entitling them to purchase Company common stock. These transactions are described in greater detail in Note 11 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. At July 1, 2018, warrants to purchase 197,274 shares at an exercise price of $74.65 per share remained outstanding. The remaining warrants expire ratably over a period ending on August 31, 2018. At July 1, 2018, the intrinsic value of the warrants (i.e. the excess of the aggregate market price of the underlying shares over the aggregate exercise price of the warrants) was $38.5 million.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the six months ended July 1, 2018 and July 2, 2017:



	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, 2017	$	340		$	(138,808	)	$	(126,623	)	$	(265,091	)
Other comprehensive income (loss) before reclassifications	1,103			188			(44,517		)	(43,226		)
Amounts reclassified from accumulated other comprehensive income	(811		)	2,708			—			1,897
Net current-period other comprehensive income (loss)	292			2,896			(44,517		)	(41,329		)
Balance as of July 1, 2018	$	632		$	(135,912	)	$	(171,140	)	$	(306,420	)



	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, 2016	$	(2,424	)	$	(136,596	)	$	(299,697	)	$	(438,717	)
Other comprehensive (loss) before reclassifications	2,684			(669		)	112,667			114,682
Amounts reclassified from accumulated other comprehensive loss	2,477			2,263			—			4,740
Net current-period other comprehensive income	5,161			1,594			112,667			119,422
Balance at July 2, 2017	$	2,737		$	(135,002	)	$	(187,030	)	$	(319,295	)

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 July 1, 2018 and July 2, 2017:



	Three Months Ended						Six Months Ended
	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017
	(Dollars in thousands)
(Gains) losses on foreign exchange contracts:
Cost of goods sold	$	(118	)	$	1,303		$	(951	)	$	2,948
Total before tax	(118		)	1,303			(951		)	2,948
Taxes (benefit)	27			(204		)	140			(471		)
Net of tax	$	(91	)	$	1,099		$	(811	)	$	2,477

Amortization of pension and other postretirement benefit items_(1):
Actuarial losses	$	1,734		$	1,727		$	3,480		$	3,453
Prior-service costs	23			30			47			59
Total before tax	1,757			1,757			3,527			3,512
Tax benefit	(408		)	(625		)	(819		)	(1,249		)
Net of tax	$	1,349		$	1,132		$	2,708		$	2,263

Total reclassifications, net of tax	$	1,258		$	2,231		$	1,897		$	4,740

(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).