Shareholders' equity

6 Months Ended

Jun. 30, 2019

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
	June 30, 2019	July 1, 2018	June 30, 2019	July 1, 2018
	(Shares in thousands)
Basic	46,172	45,581	46,111	45,455
Dilutive effect of share-based awards	864	—	878	1,052
Dilutive effect of convertible warrants	—	—	—	264
Diluted	47,036	45,581	46,989	46,771

The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 0.2 million for the three and six months ended June 30, 2019 and 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.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2019 and July 1, 2018:



	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, 2018	$	807		$	(131,380	)	$	(210,512	)	$	(341,085	)
Other comprehensive income (loss) before reclassifications	429			(13		)	12,332			12,748
Amounts reclassified from accumulated other comprehensive income	(271		)	2,701			—			2,430
Net current-period other comprehensive income (loss)	158			2,688			12,332			15,178
Balance as of June 30, 2019	$	965		$	(128,692	)	$	(198,180	)	$	(325,907	)



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

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 30, 2019 and July 1, 2018:



	Three Months Ended						Six Months Ended
	June 30, 2019			July 1, 2018			June 30, 2019			July 1, 2018
	(Dollars in thousands)
(Gains) losses on foreign exchange contracts:
Cost of goods sold	$	(179	)	$	(118	)	$	(365	)	$	(951	)
Total before tax	(179		)	(118		)	(365		)	(951		)
Taxes (benefit)	71			27			94			140
Net of tax	(108		)	(91		)	(271		)	(811		)
Losses (gains) on cross-currency swaps (net investment hedge):
Interest expense	(4,917		)	$	—		(8,799		)	$	—
Total before tax	(4,917		)	—			(8,799		)	—
Tax expense	1,111			—			2,040			—
Net of tax	(3,806		)	$	—		(6,759		)	$	—
Amortization of pension and other postretirement benefit items ₍₁₎:
Actuarial losses	1,738			1,734			3,478			3,480
Prior-service costs	22			23			44			47
Total before tax	1,760			1,757			3,522			3,527
Tax benefit	(410		)	(408		)	(821		)	(819		)
Net of tax	1,350			1,349			2,701			2,708
Total reclassifications, net of tax	$	(2,564	)	$	1,258		$	(4,329	)	$	1,897

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