Income (Loss) per Share

On July 8, 2016, the Company announced a Reverse Stock Split of its Common Stock at a ratio of 1-for-8, effective July 13, 2016. The Common Stock began trading on a split-adjusted basis on July 14, 2016. As a result of the Reverse Stock Split, each eight pre-split shares of Common Stock outstanding were automatically combined into one new share of Common Stock without any action on the part of the respective holders. The Reverse Stock Split also applied to Common Stock issuable upon the exchange of the Company’s outstanding 7% Notes and upon the exercise of the Company’s outstanding warrants and Equity Awards. The share and per share amounts below have been retroactively adjusted to give recognition to the Reverse Stock Split for all periods presented.

Basic income (loss) per share is computed based upon the weighted average number of common shares outstanding for the period. When applicable, diluted income (loss) per share is calculated using two approaches. The first approach, the treasury stock method, reflects the potential dilution that could occur if the Equity Awards to issue Common Stock were exercised. The second approach, the if converted method, reflects the potential dilution of the Equity Awards, the 7% Notes and the Warrants being exchanged for Common Stock. Under this method, interest expense associated with the 7% Notes, net of tax, if any, is added back to income from continuing operations and the shares outstanding are increased by the underlying 7% Notes equivalent.

As of June 27, 2015, the effect of approximately 2.5 million shares related to the exchange of the 7% Notes for Common Stock were excluded from the calculation of diluted income (loss) per share, as the effect would be anti-dilutive.

As of July 2, 2016, and June 27, 2015, the effect of approximately 205,000 and 458,000 shares, respectively, related to the issuance of Common Stock upon exercise of Equity Awards were excluded from the calculation of diluted income (loss) per share, as the effect would be anti-dilutive.

As of July 2, 2016, and June 27, 2015, the effect of approximately 1.5 million and zero shares, respectively, related to the issuance of Common Stock upon exercise of Warrants were excluded from the calculation of diluted income (loss) per share, as the effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted income (loss) per share for the three and six months ended July 2, 2016, and June 27, 2015 (in thousands, except per share data):



	For the Three Months Ended						For the Six Months Ended
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
Numerator for basic and diluted income (loss) per share:
Income (loss) from continuing operations	$	50,860		$	(3,355	)	$	63,880		$	(11,534	)
(Loss) income from discontinued operations, net of taxes	(3,304		)	950			(5,121		)	1,450
Net income (loss)	$	47,556		$	(2,405	)	$	58,759		$	(10,084	)
Numerator for diluted income (loss) per share:
Income (loss) from continuing operations - as reported	$	50,860		$	(3,355	)	$	63,880		$	(11,534	)
Interest expense on 7% Notes, net of taxes	572			—			1,311			—
Income (loss) from continuing operations - after assumed conversions of dilutive shares	51,432			(3,355		)	65,191			(11,534		)
(Loss) income from discontinued operations, net of taxes	(3,304		)	950			(5,121		)	1,450
Net income (loss) for diluted loss per share - after assumed conversions of dilutive shares	$	48,128		$	(2,405	)	$	60,070		$	(10,084	)
Denominator for weighted average common shares outstanding:
Basic shares	8,517			8,479			8,501			8,474
Dilutive effect of 7% Notes	1,460			—			1,642			—
Dilutive effect of Equity Awards	—			—			—			—
Dilutive effect of Warrants	—			—			—			—
Diluted shares	9,977			8,479			10,143			8,474

Income (loss) per share – basic:
Continuing operations	$	5.97		$	(0.39	)	$	7.51		$	(1.36	)
Discontinued operations	(0.39		)	0.11			(0.60		)	0.17
Net income (loss)	$	5.58		$	(0.28	)	$	6.91		$	(1.19	)

Income (loss) per share – diluted:
Continuing operations	$	5.15		$	(0.39	)	$	6.43		$	(1.36	)
Discontinued operations	(0.33		)	0.11			(0.51		)	0.17
Net income (loss)	$	4.82		$	(0.28	)	$	5.92		$	(1.19	)