EARNINGS PER SHARE

6 Months Ended

Mar. 31, 2012

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 March 31, 2012 and April 2, 2011. Accordingly, diluted EPS excludes the effect of the conversion of the 0.875% Convertible Subordinated Notes.

The following tables reflect a reconciliation of the shares used in the basic and diluted net income per share computation for the three and six months ended March 31, 2012 and April 2, 2011:

	Three months ended
(in thousands, except per share)	March 31, 2012					April 2, 2011
	Basic		Diluted			Basic			Diluted
NUMERATOR:
Net income	$	16,617	$	16,617		$	39,885		$	39,885
Less: income applicable to participating securities		-		-			(243	)		(243	)
Net income applicable to common shareholders	$	16,617	$	16,617		$	39,642		$	39,642
DENOMINATOR:
Weighted average shares outstanding - Basic		73,825		73,825			71,512			71,512
Stock options				184						328
Time-based restricted stock				674						761
Market-based restricted stock				870						519
Weighted average shares outstanding - Diluted (1)				75,553						73,120
EPS:
Net income per share - Basic	$	0.23	$	0.23		$	0.55		$	0.55
Effect of dilutive shares				(0.01	)				$	(0.01	)
Net income per share - Diluted			$	0.22					$	0.54

(1) For the three months ended March 31, 2012 and April 2, 2011, excludes 0 and 365 dilutive participating securities, respectively, as the income attributable to these shares was not included in EPS.

For the three months ended March 31, 2012 and April 2, 2011, 0.1 million and 0.4 million potentially dilutive shares, respectively, related to out of the money stock options, were excluded from EPS.

	Six months ended
(in thousands, except per share)	March 31, 2012						April 2, 2011
	Basic			Diluted			Basic			Diluted
NUMERATOR:
Net income	$	25,124		$	25,124		$	54,984		$	54,984
Less: income applicable to participating securities		(10	)		(10	)		(343	)		(343	)
Net income applicable to common shareholders	$	25,114		$	25,114		$	54,641		$	54,641
DENOMINATOR:
Weighted average shares outstanding - Basic		73,683			73,683			71,196			71,196
Stock options					152						189
Time-based restricted stock					557						592
Market-based restricted stock					768						433
Weighted average shares outstanding - Diluted (1)					75,160						72,410
EPS:
Net income per share - Basic	$	0.34		$	0.34		$	0.77		$	0.77
Effect of dilutive shares					(0.01	)				$	(0.02	)
Net income per share - Diluted				$	0.33					$	0.75

(1) For the six months ended March 31, 2012 and April 2, 2011, excludes 5 and 348 dilutive participating securities, respectively, as the income attributable to these shares was not included in EPS.

For the six months ended March 31, 2012 and April 2, 2011, 0.2 million and 0.8 million potentially dilutive shares, respectively, related to out of the money stock options, were excluded from EPS.