Earnings Per Share

12 Months Ended

Oct. 03, 2020

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable period. In fiscal year 2018, the TEUs were assumed to be settled at the minimum settlement amount of 1.9841 shares per TEU when calculating weighted average common shares outstanding for purposes of basic earnings per share.

Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution. As a result, stock options to acquire 1,113, 805 and 584 weighted common shares have been excluded from the diluted weighted shares outstanding calculation for fiscal years 2020, 2019 and 2018, respectively.

In connection with the pricing of the TEUs, we purchased capped calls. The capped calls were settled in the fourth quarter of fiscal year 2019 and have been reflected in the calculation of diluted earnings in fiscal year 2019. See Note 13 for additional information on our equity instruments.

Basic and diluted earnings per share were calculated as follows:


	2020		2019		2018
Net income (loss)	$	(272,051)	$	43,067	$	61,328

Weighted average common shares outstanding	19,212		19,258		19,163

Dilutive impact of stock-based compensation1	—		189		130
Weighted average dilutive common shares outstanding	19,212		19,447		19,293

Earnings (loss) per share
Basic	$	(14.16)	$	2.24	$	3.20
Diluted	$	(14.16)	$	2.21	$	3.18

1 For fiscal year 2020, 120 common stock equivalents of potentially dilutive common stock were excluded from the diluted earnings per share calculation due to the loss from continuing operations.