EARNINGS PER SHARE (EPS)

3 Months Ended

Apr. 01, 2012

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

NOTE 11—EARNINGS PER SHARE (EPS)

        For the first quarter of fiscal 2012 and 2011, basic earnings per common share ("EPS") were calculated utilizing the "two-class" method. For the first quarter of 2011, diluted EPS was calculated utilizing the two-class method, while diluted EPS for the first quarter of 2012 was calculated utilizing the "if-converted" method. In prior periods, the Company's outstanding participating redeemable convertible preferred stock was more dilutive under the two-class method; however, given the conversion of such preferred stock into common during the fourth quarter of 2011, together with the issuance of the Series C junior participating convertible preferred stock at the same date, the impact of the outstanding participating securities during the first quarter of 2012 was not more dilutive when computing diluted EPS using the two-class method. As such, the if-converted method was used to compute diluted EPS during the quarter ended April 1, 2012. Instruments classified as Common shares issuable assuming dilution include stock options, non-vested share units, warrants, convertible preferred stock, and convertible debt.

        Under the two-class method, EPS is computed by dividing earnings allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Earnings are allocated to both common shares and participating securities based on the respective number of weighted-average shares outstanding for the period. The Company's Series C junior participating convertible preferred stock are participating securities due to their participation rights related to cash dividends declared by the Company. If dividends are distributed to the common stockholders, the Company is required to pay dividends to the holders of the preferred stock and common stock pro-rata on an as converted basis.

        Components of basic and diluted earnings per share are calculated as follows (in millions, except per share data):

	Three Months Ended
	April 1, 2012			April 3, 2011
Basic EPS
Net income attributable to common stockholders	$	5.0		$	29.9
Less: undistributed income allocated to participating preferred stockholders		(0.9	)		(3.8	)
Net income allocated to common stockholders	$	4.1		$	26.1
Weighted average common shares outstanding (basic)		121.9			103.8
	$	0.03		$	0.25
Diluted EPS
Net income attributable to common stockholders	$	5.0		$	29.9
Add: effect of dilutive convertible debt		—			1.1
Less: undistributed income allocated to participating preferred stockholders		—			(2.9	)
Net income attributable to common stockholders	$	5.0		$	28.1
Weighted average common shares outstanding (basic)		121.9			103.8
Common shares issuable assuming dilution		34.3			37.1
Weighted average common shares outstanding (diluted)		156.2			140.9
	$	0.03		$	0.20

        Using the treasury stock method, the weighted average common share equivalents outstanding during each period that were excluded from the computation of diluted earnings per share because the exercise price for these options and grant price for these non-vested share units were greater than the average market price of the Company's shares of common stock during the three months ended April 1, 2012 and April 3, 2011 were 5.5 million and 1.3 million, respectively.