Computation of Earnings Per Common Share

12 Months Ended

Jul. 30, 2016

Computation of Earnings Per Common Share

Computation of Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):



	Fiscal Year Ended
	2016		2015		2014
Net income available to common stockholders (numerator)	$	128,740	$	84,324	$	39,978

Weighted-average number of common shares (denominator)	32,315,636		34,045,481		33,773,158

Basic earnings per common share	$	3.98	$	2.48	$	1.18

Weighted-average number of common shares	32,315,636		34,045,481		33,773,158
Potential shares of common stock arising from stock options, and unvested restricted share units	800,119		981,207		1,043,223
Total shares-diluted (denominator)	33,115,755		35,026,688		34,816,381

Diluted earnings per common share	$	3.89	$	2.41	$	1.15

The weighted-average number of common shares outstanding used in the computation of diluted earnings per common share does not include the effect of the following instruments because their inclusion would have been anti-dilutive:



	Fiscal Year Ended
	2016	2015	2014
Stock-based awards	65,514	103,896	586,389
0.75% convertible senior notes due 2021⁽¹⁾	5,005,734	—	—
Warrants⁽¹⁾	5,005,734	—	—
Total anti-dilutive weighted shares excluded from the calculation of earnings per common share	10,076,982	103,896	586,389

⁽¹⁾See Note 10, Debt, for additional information related to the Company’s convertible senior notes and warrant transactions.

Under the treasury stock method, the convertible senior notes will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the conversion price for the convertible senior notes of $96.89 per share. The warrants will have a dilutive impact on earnings per common share if the Company’s average stock price for the period exceeds the warrant strike price of $130.43 per share. As the Company’s average stock price for fiscal 2016 was below the conversion price for the convertible senior notes and the strike price for the warrants, the underlying common shares were anti-dilutive as reflected above.

In connection with the offering of the convertible senior notes, the Company entered into convertible note hedge transactions with counterparties for the purpose of reducing the potential dilution to common stockholders from the conversion of the notes and offsetting any potential cash payments in excess of the principal amount of the notes. Prior to conversion, the convertible note hedge is not included for purposes of the calculation of earnings per common share as its effect would be anti-dilutive. Upon conversion, the convertible note hedge is expected to offset the dilutive effect of the convertible senior notes when the stock price is above $96.89 per share. See Note 10, Debt, for additional information related to the Company’s convertible note hedge.