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 shares because they were anti-dilutive were 970,625 in the three-month period ending March 30, 2018. Due to the net loss for the six months ending March 30, 2018, there was no impact from common shares issuable from stock options for diluted shares. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 740,575 and 775,225 in the three and six-month periods ending March 31, 2017, respectively. Shares used for calculating earnings per share are disclosed in the following table:

In Thousands	Three Months Ended				Six Months Ended
	March 30,		March 31,		March 30,		March 31,
	2018		2017		2018		2017

Shares used for basic earnings per share		29,614		29,719		29,758		29,633
Shares used for diluted earnings per share		29,726		29,959		29,758		29,895

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 March 30, 2018, and September 29, 2017, there were no shares of preferred stock or serial preferred stock outstanding.

In June 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.

During the three months ended March 30, 2018, the Company repurchased 313,900 shares under this program at an average price paid per share of $73.29, for an aggregate purchase price of $23.0 million. During the six months ended March 30, 2018, the Company repurchased 601,400 shares under this program at an average price paid per share of $72.25, for an aggregate purchase price of $43.4 million. There were no shares repurchased during the three or six months ended March 31, 2017. There have been no shares repurchased subsequent to March 30, 2018. Since the program began, the Company has repurchased 3,737,327 shares for an aggregate purchase price of $352.0 million, with $48.0 million in shares remaining available for repurchase in the future.

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

	Six Months Ended			Year Ended
	March 30,			September 29,
	2018			2017
Shares Issued:
Balance, beginning of year		33,117,473			32,564,252
Shares issued under share-based compensation plans		46,888			553,221
Balance, end of current period		33,164,361			33,117,473

Treasury Stock:
Balance, beginning of year		(3,135,927	)		(3,135,927	)
Shares purchased		(601,400	)		-
Balance, end of current period		(3,737,327	)		(3,135,927	)

Shares outstanding, end of period		29,427,034			29,981,546

The components of Accumulated Other Comprehensive Income (Loss):

In Thousands	March 30,			September 29,
	2018			2017

Unrealized gain on derivative contracts	$	6,096		$	13,469
Tax effect		(1,958	)		(3,892	)
		4,138			9,577

Pension and post-retirement obligations		(79,921	)		(81,782	)
Tax effect		27,482			27,956
		(52,439	)		(53,826	)

Foreign currency translation adjustment		(204,442	)		(222,621	)
Accumulated other comprehensive income (loss)	$	(252,743	)	$	(266,870	)