Net Income (Loss) Per Common Share

12 Months Ended

Dec. 25, 2011

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

Note 7. Net Income (Loss) Per Common Share

The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”). Under Topic 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities.

In prior reporting periods, the Company had two classes of participating securities, Series B Convertible Preferred Stock and common stock. The two classes of participating securities: common shares and preferred shares represented 99% and 1% of outstanding shares, respectively. The preferred shareholders had the ability to participate in dividends with common shareholders according to a predetermined formula (one for one) based upon the conversion of preferred shares to common shares. On March 8, 2011, all of the 10,000 shares of the previously issued and outstanding shares of Series B Convertible Preferred Stock were redeemed for 100,000 shares of common stock.

For the year ended December 27, 2009, the preferred shares were not included in the computation of basic loss per share because the participating securities do not have a contractual obligation to share in the losses of the Company. Basic and diluted income per share calculated using the two-class method in accordance with Topic 260 was as follows:

(In millions, except earnings per share)	December 27, 2009			December 26, 2010			December 25, 2011
Net income (loss) from continuing operations	$	(38.3	)	$	14.6		$	(23.5	)
Less net income from continuing operations allocated to preferred shareholders	—			(0.1		)	—
Net income (loss) from continuing operations allocated to common shareholders (A)	$	(38.3	)	$	14.5		$	(23.5	)
Weighted average outstanding shares of common stock (B)	13.9			16.5			27.4
Weighted average shares from preferred stock	—			0.1			—
Basic weighted average outstanding shares of common stock and participating securities	13.9			16.6			27.4
Dilutive effect of employee stock options and awards	—			0.3			—
Common stock and common stock equivalents(C)	13.9			16.9			27.4
Net income (loss) from continuing operations per common share:
Basic (A/B)	$	(2.76	)	$	0.88		$	(0.86	)
Diluted (A/C)	$	(2.76	)	$	0.87		$	(0.86	)

The following shares were excluded from the calculation of diluted income per share because their inclusion would have been anti-dilutive.

	2009	2010	2011
Shares from stock options and awards	1.6	1.2	2.1
Shares from preferred stock	0.1	—	—
Shares from convertible notes	0.1	—	—