Computation of Earnings Per Share

6 Months Ended

Jul. 02, 2021

Earnings Per Share Reconciliation [Abstract]

COMPUTATION OF EARNINGS PER SHARE

The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each period. The computation of diluted earnings per share reflects the common stock equivalency of dilutive options granted to employees under the Company's stock incentive plan, shares issuable on redemption of its convertible notes and shares issuable upon redemption of outstanding warrants.


	For the Three Months Ended				For the Six Months Ended
	July 2, 2021		July 3, 2020		July 2, 2021		July 3, 2020
In thousands, except per share amounts
Earnings (loss) from continuing operations	$	11,856	$	(100)	$	19,840	$	(507)
Total earnings from discontinued operations	—		—		—		692
Net earnings (loss)	$	11,856	$	(100)	$	19,840	$	185

Basic:
Weighted average number of shares outstanding	27,867		27,659		27,841		27,734

Earnings (loss) per share from continuing operations	$	0.43	$	0.00	$	0.71	$	(0.02)
Earnings per share from discontinued operations	0.00		0.00		0.00		0.03
Basic earnings per share	$	0.43	$	0.00	$	0.71	$	0.01

Diluted:
Weighted average number of shares outstanding	27,867		27,659		27,841		27,734
Weighted average shares issuable on exercise of dilutive stock options	46		—		49		—
Total	27,913		27,659		27,890		27,734

Earnings (loss) per share from continuing operations	$	0.42	$	0.00	$	0.71	$	(0.02)
Earnings per share from discontinued operations	0.00		0.00		0.00		0.03
Diluted earnings per share	$	0.42	$	0.00	$	0.71	$	0.01

Equity awards

For the three-month and six-month fiscal periods ended July 2, 2021, respectively, 482,339 and 461,649 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the periods. For the three-month and six-month fiscal periods ended July 3, 2020, respectively, 772,781 and 608,080 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the periods.

All outstanding stock awards were excluded in the computation of diluted earnings per share in the three-month and six-month fiscal periods ended July 3, 2020 because their effect was antidilutive due to the loss from continuing operations. For the three-month and six-month fiscal periods ended July 3, 2020, respectively, an additional 5,226 and 43,645 shares issuable under equity awards, which would have been dilutive if exercised based on the average market price being higher than the exercise price, were excluded from the computation of diluted earnings per share as their effect was antidilutive due to the loss from continuing operations.

15. COMPUTATION OF EARNINGS PER SHARE (CONTINUED)

2024 Convertible Notes

For the three-month and six-month fiscal periods ended July 2, 2021 and July 3, 2020, shares issuable under the Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because the conversion price was more than the average market price of the Company's stock during the periods.