Earnings/(Loss) Per Share

Basic earnings/(loss) per share is calculated by dividing net earnings/(loss) available to common stockholders by the weighted-average common stock outstanding. Diluted earnings/(loss) per share is calculated similarly, except that it includes the dilutive effect of the assumed exercise of securities, including outstanding warrants and the effect of shares issuable under our Company’s stock-based incentive plans if such effect is dilutive.

The two-class method is an earnings allocation method for computing earnings/(loss) per share when a company’s capital structure includes either two or more classes of common stock or common stock and participating securities. This method determines earnings/(loss) per share based on dividends declared on common stock and participating securities (i.e., distributed earnings), as well as participation rights of participating securities in any undistributed earnings.

Basic and diluted earnings/(loss) per share have been computed as follows:



	Years Ended
(In thousands, except per share data)	December 28, 2014			December 29, 2013		December 30, 2012
	(52 weeks)			(53 weeks)		(52 weeks)
Amounts attributable to The New York Times Company common stockholders:
Income from continuing operations	$	34,393		$	57,156	$	163,774
(Loss)/income from discontinued operations, net of income taxes	(1,086		)	7,949		(27,927		)
Net income	$	33,307		$	65,105	$	135,847
Average number of common shares outstanding:
Basic	150,673			149,755		148,147
Diluted	161,323			157,774		152,693
Basic earnings per share attributable to The New York Times Company common stockholders:
Income from continuing operations	$	0.23		$	0.38	$	1.11
(Loss)/income from discontinued operations, net of income taxes	(0.01		)	0.05		(0.19		)
Net income	$	0.22		$	0.43	$	0.92
Diluted earnings per share attributable to The New York Times Company common stockholders:
Income from continuing operations	$	0.21		$	0.36	$	1.07
(Loss)/income from discontinued operations, net of income taxes	(0.01		)	0.05		(0.18		)
Net income	$	0.20		$	0.41	$	0.89

The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. Our warrants, restricted stock units and stock options could have the most significant impact on diluted shares.

In January 2009, pursuant to a securities purchase agreement, we issued warrants to affiliates of Carlos Slim Helú, the beneficial owner of approximately 8% of our Class A Common Stock (excluding the warrants), to purchase 15.9 million shares of our Class A Common Stock at a price of $6.3572 per share. On January 14, 2015, the warrant holders exercised these warrants in full and the Company received cash proceeds of approximately $101.1 million from this exercise. See Note 19 for additional information.

Securities that could potentially be dilutive are excluded from the computation of diluted earnings per share when a loss from continuing operations exists or when the exercise price exceeds the market value of our Class A Common Stock, because their inclusion would result in an anti-dilutive effect on per share amounts.

The number of stock options that was excluded from the computation of diluted earnings per share because they were anti-dilutive was approximately 6 million in 2014, 10 million in 2013 and 15 million in 2012, respectively.