Net Earnings (Loss) per Share

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, unvested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. The Company’s unvested restricted shares and unvested restricted stock units granted prior to July 15, 2015 were considered participating securities. Cash dividends to restricted stock units and performance-based stock units granted on or after July 15, 2015 are not distributed until and except to the extent that the restricted stock units vest, and in the case of performance-based stock units, until and except to the extent that the performance metrics are achieved or are otherwise deemed satisfied. Stock options do not receive cash dividends. As such, these awards are not considered participating securities.

Basic earnings per common share are calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock method or two-class method. Other potentially dilutive securities include stock options, restricted stock units granted after July 15, 2015, and performance-based stock units and are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods.

During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. Due to the net loss during the 13 and 39 weeks ended January 27, 2018, participating securities in the amounts of 142,237 and 123,066, respectively, were excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive. The Company’s outstanding non-participating securities consisting of dilutive stock options and restricted stock units of 294,874, 56,776, 193,804 and 44,279 for the 13 weeks ended January 26, 2019 and January 27, 2018 and the 39 weeks ended January 26, 2019 and January 27, 2018, respectively, were excluded from the calculation of loss per share using the two-class method because the effect would be antidilutive.

The following is a reconciliation of the Company’s basic and diluted income (loss) per share calculation:


	13 weeks ended						39 weeks ended
	January 26, 2019			January 27, 2018			January 26, 2019			January 27, 2018
Numerator for basic income (loss) per share:
Net income (loss)	$	66,930			(63,536	)	$	22,498			(104,408	)
Less allocation of dividends to participating securities		(25	)		(21	)		(69	)		(59	)
Less allocation of undistributed earnings to participating securities		(130	)		—			—			—

Net income (loss) available to common shareholders	$	66,775			(63,557	)	$	22,429			(104,467	)

Numerator for diluted income (loss) per share:
Net income (loss) available to common shareholders	$	66,775			(63,557	)	$	22,429			(104,467	)
Allocation of undistributed earnings to participating securities		130			—			—			—
Less diluted allocation of undistributed earnings to participating securities		(129	)		—			—			—

Net income (loss) available to common shareholders	$	66,776			(63,557	)	$	22,429			(104,467	)

Denominator for basic income (loss) per share:
Basic weighted average common shares		73,022			72,649			72,881			72,566

Denominator for diluted income (loss) per share:
Basic weighted average common shares		73,022			72,649			72,881			72,566
Average dilutive options		—			—			—			—
Average dilutive non-participating securities		295			—			194			—

Diluted weighted average common shares		73,317			72,649			73,075			72,566

Income (loss) per common share:
Basic	$	0.91			(0.87	)	$	0.31			(1.44	)
Diluted	$	0.91			(0.87	)	$	0.31			(1.44	)