Changes in shareholders' equity

3 Months Ended

Mar. 31, 2013

Changes in shareholders' equity

Note 10 — Changes in shareholders’ equity

In 2007, the Company’s Board of Directors authorized the repurchase of up to $300 million of outstanding Company common stock. Repurchases of Company stock under the Board authorization may be made from time to time in the open market and may include privately-negotiated transactions as market conditions warrant and subject to regulatory considerations. The stock repurchase program has no expiration date and the Company’s ability to execute on the program will depend on, among other factors, cash requirements for acquisitions, cash generated from operations, debt repayment obligations, market conditions and regulatory requirements. In addition, under the Company’s senior credit agreements, the Company is subject to certain restrictions relating to its ability to repurchase shares in the event the Company’s consolidated leverage ratio (generally, the ratio of Consolidated Total Indebtedness to Consolidated EBITDA, as defined in the senior credit agreements) exceeds certain levels, which may limit the Company’s ability to repurchase shares under this Board authorization. Through March 31, 2013, no shares have been purchased under this Board authorization.

The following table provides a reconciliation of basic to diluted weighted average shares outstanding:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(Shares in thousands)
Basic		41,014		40,769
Dilutive shares assumed issued		2,033		—
Diluted		43,047		40,769

Weighted average stock options that were antidilutive and therefore not included in the calculation of earnings per share were approximately 7.8 million and 8.9 million for the three months ended March 31, 2013 and April 1, 2012, respectively. As required under GAAP, the dilutive shares assumed issued includes weighted average shares of approximately 1.6 million associated with the Convertible Senior Subordinated Notes due 2017 and warrants.

The following tables provide information relating to the changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2013 and April 1, 2012:

	Cash Flow Hedges			Pension and Other Postretirement Benefit Plans			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive Income (Loss)
	(Dollars in thousands)
Balance at December 31, 2012	$	(381	)	$	(127,257	)	$	(4,410	)	$	(132,048	)
Other comprehensive income (loss) before reclassifications		455			(365	)		(26,746	)		(26,656	)
Amounts reclassified from accumulated other comprehensive income (loss)		(275	)		1,455			—			1,180
Net current-period other comprehensive income (loss)		180			1,090			(26,746	)		(25,476	)
Balance at March 31, 2013	$	(201	)	$	(126,167	)	$	(31,156	)	$	(157,524	)

	Cash Flow Hedges			Pension and Other Postretirement Benefit Plans			Foreign Currency Translation Adjustment			Accumulated Other Comprehensive Income (Loss)
	(Dollars in thousands)
Balance at December 31, 2011	$	(7,257	)	$	(134,548	)	$	(17,548	)	$	(159,353	)
Other comprehensive income (loss) before reclassifications		693			(139	)		30,605			31,159
Amounts reclassified from accumulated other comprehensive income		1,767			1,117			—			2,884
Net current-period other comprehensive income		2,460			978			30,605			34,043
Balance at April 1, 2012	$	(4,797	)	$	(133,570	)	$	13,057		$	(125,310	)

The following table provides information relating to the reclassifications of losses/(gain) in accumulated other comprehensive income into expense/(income), net of tax, for the three months ended March 31, 2013 and April 1, 2012:

	March 31, 2013			April 1, 2012
	(Dollars in thousands)
Gains and losses on cash flow hedges:
Interest Rate Contracts:
Interest expense	$	—		$	3,751
Foreign Exchange Contracts:
Cost of goods sold		(502	)		(897	)
Total before tax		(502	)		2,854
Tax expense		227			(1,087	)
Net of tax	$	(275	)	$	1,767
Amortization of pension and other postretirement benefits items:
Actuarial losses/(gains)(1)	$	2,146		$	1,711
Prior-service costs(1)		(6	)		(6	)
Transition obligation(1)		1			24
Total before tax		2,141			1,729
Tax expense		(687	)		(612	)
Net of tax	$	1,455		$	1,117
Total reclassifications, net of tax	$	1,180		$	2,884

(1) These accumulated other comprehensive income components are included in the computation of net benefit cost of pension and other postretirement benefit plans (see Note 12, “Pension and other postretirement benefits” for additional information).