EARNINGS PER SHARE

12 Months Ended

Oct. 01, 2011

EARNINGS PER SHARE

NOTE 7: EARNINGS PER SHARE

Basic income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period. In addition, net income applicable to participating securities and the related participating securities are excluded from the computation of basic income per share.

Diluted income per share is calculated using the weighted average number of shares of common stock outstanding during the period and, if there is net income during the period, the dilutive impact of common stock equivalents outstanding during the period. In computing diluted income per share, if convertible debt is assumed to be converted to common shares, the after-tax amount of interest expense recognized in the period associated with the convertible debt is added back to net income.

The Company’s 0.875% Convertible Subordinated Notes would not result in the issuance of any dilutive shares, since the Notes were not convertible and the conversion option was not “in the money” as of October 1, 2011 and October 2, 2010. Accordingly, diluted EPS excludes the effect of the conversion of the 0.875% Convertible Subordinated Notes.

The following tables reflect reconciliations of the shares used in the basic and diluted net income (loss) per share computation for fiscal 2011, 2010, and 2009:

	Fiscal
(in thousands, except per share data)	2011						2010						2009
NUMERATOR:	Basic			Diluted			Basic			Diluted			Basic			Diluted
Net income (loss)	$	127,610		$	127,610		$	142,142		$	142,142		$	(63,612	)	$	(63,612	)
Less: income applicable to participating securities (1)		(716	)		(716	)		(1,516	)		(1,516	)		-			-
After-tax interest expense (1)		n/a			-			n/a			272			n/a			-
Net income (loss) applicable to common shareholders	$	126,894		$	126,894		$	140,626		$	140,898		$	(63,612	)	$	(63,612	)
DENOMINATOR:
Weighted average shares outstanding - Basic		71,820			71,820			70,012			70,012			62,188			62,188
Market-based restricted stock					442						195						n/a
Time-based restricted stock					846						247						-
Stock options					233						156						-
Performance-based restricted stock					-						110						-
1.000 % Convertible Subordinated Notes					n/a						2,828						-
Weighted average shares outstanding - Diluted (2)					73,341						73,548						62,188
EPS:
Net income (loss) per share - Basic	$	1.77		$	1.77		$	2.01		$	2.01		$	(1.02	)	$	(1.02	)
Effect of dilutive shares				$	(0.04	)				$	(0.09	)				$	-
Net income (loss) per share - Diluted				$	1.73					$	1.92					$	(1.02	)

(1)  Due to the Company’s loss from continuing operations for fiscal 2009, the effect of participating securities was excluded from the computation of basic and diluted EPS, and the conversion of convertible subordinated notes and the related after-tax interest expense was not assumed since the effect would have been anti-dilutive. In addition, due to the Company’s loss from continuing operations, potentially dilutive shares were not assumed since the effect would have been anti-dilutive.

(2) Fiscal 2011, 2010 and 2009 exclude 350, 431 and 69 dilutive participating securities, respectively, as the income attributable to these shares was not included in EPS.

The following table reflects the number of potentially dilutive shares which were excluded from diluted EPS, as their inclusion was anti-dilutive for fiscal 2011, 2010, and 2009:

	Fiscal
(in thousands)	2011		2010		2009
Potentially dilutive shares related to:
Stock options, out of the money		498		2,612		5,982
Stock options, in the money but excluded due to the Company's net loss		-		-		31
Performance-based and time-based restricted stock		-		-		69
Convertible Subordinated Notes		-		-		4,625
		498		2,612		10,707