Earnings Per Share

6 Months Ended

Jul. 02, 2016

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to Snyder's-Lance by the weighted average number of common shares outstanding during each period.

Diluted earnings per share gives effect to all securities representing potential common shares that were dilutive and outstanding during the period. In the calculation of diluted earnings per share, the denominator includes the number of additional common shares that would have been outstanding if our outstanding dilutive stock options had been exercised pursuant to the treasury stock method, or if our outstanding dilutive restricted units or performance-based restricted units had vested and converted to common stock. Anti-dilutive shares are excluded from the dilutive earnings calculation. No adjustment to reported net income is required when computing diluted earnings per share.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and are treated as a separate class of securities in calculating earnings per share pursuant to the two-class method. We have granted and expect to continue to grant restricted shares with non-forfeitable rights to dividends, and restricted units with non-forfeitable rights to dividend equivalents. As such, these awards have been included in our calculation of basic and diluted earnings per share using the two-class method, as computed in the table below:



	Quarter Ended				Six Months Ended
(in thousands, except per share data)	July 2, 2016		July 4, 2015		July 2, 2016			July 4, 2015
Basic EPS:
Net income/(loss) attributable to Snyder's-Lance, Inc.	$	19,681	$	17,329	$	(5,750	)	$	27,965
Less: Income allocated to participating securities	54		49		—			68
Income/(loss) allocated to common shares	$	19,627	$	17,280	$	(5,750	)	$	27,897
Weighted average shares outstanding – Basic	95,679		70,426		87,816			70,342
Earnings/(loss) per share – Basic	$	0.21	$	0.25	$	(0.07	)	$	0.40

Diluted EPS:
Weighted average shares outstanding – Basic	95,679		70,426		87,816			70,342
Effect of dilutive stock options, restricted units and performance-based restricted units on shares outstanding	987		745		—			732
Weighted average shares outstanding – Diluted	96,666		71,171		87,816			71,074
Earnings/(loss) per share – Diluted	$	0.20	$	0.24	$	(0.07	)	$	0.39

Due to the net loss incurred during the first six months of 2016, basic weighted average shares outstanding were required to be used for diluted earnings per share. This resulted in approximately 858,000 potentially dilutive restricted units and stock options being excluded from diluted weighted average shares outstanding for the first six months of 2016. For both the second quarter and first six months of 2016, approximately 1.5 million stock options and performance based restricted units were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive. For both the second quarter and first six months of 2015, approximately 379,000 stock options were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive.