Note 3 – Earnings Per Share and Shareholders’ Equity

Basic earnings per share is computed on the basis of the weighted average number of shares outstanding during the year. Diluted earnings per share includes the dilutive effect of stock options, restricted stock units and share units related to the Company’s performance share plan to the extent that performance share plan objectives are met. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 605,725 and 690,475 in the three and nine month periods ending June 30, 2017. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 858,000 and 745,067 in the three and nine month periods ending July 1, 2016. Shares used for calculating earnings per share are disclosed in the following table:

In Thousands	Three Months Ended				Nine Months Ended
	June 30,		July 1,		June 30,		July 1,
	2017		2016		2017		2016

Shares used for basic earnings per share		29,830		29,381		29,698		29,517
Shares used for diluted earnings per share		30,068		29,601		29,953		29,788

The authorized capital stock of the Company consists of 25,000 shares of preferred stock ($100 par value), 475,000 shares of serial preferred stock ($1.00 par value), each issuable in series, and 60,000,000 shares of common stock ($.20 par value). As of June 30, 2017, and September 30, 2016, there were no shares of preferred stock or serial preferred stock outstanding.

On June 19, 2014, the Company’s board of directors approved a $200 million share repurchase program. In March 2015, the Company’s board of directors approved an additional $200 million for the share repurchase program. Under the program, the Company is authorized to repurchase up to $400 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. The Company may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. The program does not require the Company to acquire a specific number of shares. Common stock repurchased can be reissued, and accordingly, the Company accounts for repurchased stock under the cost method of accounting.

There were no shares repurchased during the nine months ended June 30, 2017. There were 304,577 shares repurchased during the nine months ended July 1, 2016. Since the program began, the Company has repurchased 3,135,927 shares for an aggregate purchase price of $308.5 million, with $91.5 million in shares remaining available for repurchase in the future.

Changes in issued and outstanding common shares are summarized as follows:

	Nine Months Ended			Year Ended
	June 30,			September 30,
	2017			2016
Shares Issued:
Balance, beginning of year		32,564,252			32,378,185
Shares issued under share-based compensation plans		532,491			186,067
Balance, end of current period		33,096,743			32,564,252

Treasury Stock:
Balance, beginning of year		(3,135,927	)		(2,831,350	)
Shares purchased		-			(304,577	)
Balance, end of current period		(3,135,927	)		(3,135,927	)

Shares outstanding, end of period		29,960,816			29,428,325

The components of Accumulated Other Comprehensive Income (Loss):

In Thousands	June 30,			September 30,
	2017			2016

Unrealized gain (loss) on derivative contracts	$	6,724		$	(4,547	)
Tax effect		(2,017	)		1,077
		4,707			(3,470	)

Pension and post-retirement obligations		(112,214	)		(116,346	)
Tax effect		38,268			39,804
		(73,946	)		(76,542	)

Foreign currency translation adjustment		(258,919	)		(268,845	)
Accumulated other comprehensive income (loss)	$	(328,158	)	$	(348,857	)