The Company computes earnings per common share (“EPS”) from continuing operations, discontinued operations and net earnings per common share under the two-class method which requires the allocation of all distributed and undistributed earnings to common stock and other participating securities based on their respective rights to receive distributions of earnings or losses. The Company’s Class A Common Stock and Class B Common Stock equally share in distributed and undistributed earnings. The Company accounts for the Warrants as participating securities, as holders of the Warrants, in accordance with and subject to the terms and conditions of the Warrant Agreement, are entitled to receive ratable distributions of the Company’s earnings concurrently with such distributions made to the holders of Common Stock, subject to certain restrictions relating to FCC rules and requirements.

The Company computes basic EPS by dividing income from continuing operations, income from discontinued operations, and net income, respectively, applicable to common shares by the weighted average number of common shares outstanding during the period. In accordance with the two-class method, undistributed earnings applicable to the Warrants have been excluded from the computation of basic EPS. Diluted EPS is computed by dividing income from continuing operations, income from discontinued operations, and net income, respectively, by the weighted average number of common shares outstanding during the period as adjusted for the assumed exercise of all outstanding stock awards. The calculation of diluted EPS assumes that stock awards outstanding were exercised at the beginning of the period. The Warrants and stock awards are included in the calculation of diluted EPS only when their inclusion in the calculation is dilutive.

ASC Topic 260, “Earnings per Share,” states that the presentation of basic and diluted EPS is required only for common stock and not for participating securities. For the three months ended March 29, 2015 and March 30, 2014, 1,885,431 and 4,510,414 of the outstanding weighted-average Warrants, respectively, have been excluded from the below table.

The calculation of basic and diluted EPS is presented below (in thousands, except for per share data):



	Three Months Ended
	March 29, 2015		March 30, 2014
EPS numerator:
Income from continuing operations, as reported	$	36,417	$	28,467
Less: Undistributed earnings allocated to Warrants	706		1,284
Income from continuing operations attributable to common shareholders for basic EPS	$	35,711	$	27,183
Add: Undistributed earnings allocated to dilutive securities (1)	1		3
Income from continuing operations attributable to common shareholders for diluted EPS	$	35,712	$	27,186

Income from discontinued operations, as reported	$	—	$	12,601
Less: Undistributed earnings allocated to Warrants	—		568
Income from discontinued operations attributable to common shareholders for basic and diluted EPS (1)	$	—	$	12,033

Net income attributable to common shareholders for basic EPS	$	35,711	$	39,216

Net income attributable to common shareholders for diluted EPS	$	35,712	$	39,219

EPS denominator:
Weighted average shares outstanding - basic	95,411		95,524
Impact of dilutive securities (1)	125		168
Weighted average shares outstanding - diluted	95,536		95,692

Basic Earnings Per Common Share from:
Continuing Operations	$	0.37	$	0.28
Discontinued Operations	—		0.13
Net Earnings Per Common Share	$	0.37	$	0.41

Diluted Earnings Per Common Share from:
Continuing Operations	$	0.37	$	0.28
Discontinued Operations	—		0.13
Net Earnings Per Common Share	$	0.37	$	0.41


(1)	The impact of dilutive securities associated with Equity Awards held by Tribune Publishing employees was immaterial. As such, all of the impact of dilutive securities has been allocated to diluted EPS from continuing operations.

Because of their anti-dilutive effect, 1,215,011 common share equivalents, comprised of NSOs, PSUs and RSUs, have been excluded from the diluted EPS calculation for the three months ended March 29, 2015. Because of their anti-dilutive effect, 492,491 common share equivalents, comprised of NSOs and RSUs, have been excluded from the diluted EPS calculation for the three months ended March 30, 2014.