EQUITY AND NONCONTROLLING INTERESTS

Earnings Per Share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share:



	Fiscal Year
	2017			2016		2015
	(in thousands)
Numerator:
Income from continuing operations, net of income taxes	$	125,586		$	156,086	$	152,037
Income (loss) from discontinued operations, net of income taxes	(137		)	280		(950		)
Less: Net income attributable to noncontrolling interests	2,094			1,601		1,774
Net income attributable to common shareholders	$	123,355		$	154,765	$	149,313

Denominator:
Weighted-average shares outstanding—Basic	47,481			47,014		46,496
Effect of dilutive securities:
Stock options, restricted stock units, performance share units and restricted stock	1,083			944		1,138
Weighted-average shares outstanding—Diluted	48,564			47,958		47,634

Options to purchase 0.6 million shares, 0.8 million shares, and 0.5 million shares for fiscal years 2017, 2016 and 2015, respectively, as well as a non-significant number of restricted shares, RSUs, and performance share units (PSUs), were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Basic weighted-average shares outstanding for each of the fiscal years 2017, 2016 and 2015 excluded the impact of 1.1 million shares of non-vested restricted stock and RSUs.

Treasury Shares

In July 2010, the Company’s Board of Directors authorized a $500.0 million stock repurchase program, and subsequently approved increases to the stock repurchase program of $250.0 million in 2010, $250.0 million in 2013, $150.0 million in 2014, and $150.0 million in 2017, for an aggregate authorization of $1.3 billion. Under its authorized stock repurchase program, the Company repurchased 1.0 million shares totaling $90.6 million and 1.5 million shares totaling $108.8 million in fiscal years 2017 and 2015, respectively, and did not repurchase any shares in fiscal year 2016. As of December 30, 2017, the Company had $129.1 million remaining on the authorized stock repurchase program. In addition, the Company’s stock-based compensation plans permit the netting of common stock upon vesting of restricted stock, RSUs, and PSUs in order to satisfy individual statutory tax withholding requirements. The Company acquired 0.2 million shares for $16.3 million, 0.2 million shares for $12.3 million, and 0.1 million shares for $8.7 million in fiscal years 2017, 2016 and 2015, respectively, from such netting.

Accumulated Other Comprehensive Income (Loss)

Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows:



	Foreign Currency Translation Adjustment and Other⁽³⁾			Pension and Other Post-Retirement Benefit Plans			Total
	(in thousands)
December 26, 2015	$	(82,977	)	$	(52,571	)	$	(135,548	)
Other comprehensive loss before reclassifications ⁽¹⁾	(71,618		)	(60,678		)	(132,296		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			1,711			1,711
Net current period other comprehensive income (loss)	(71,618		)	(58,967		)	(130,585		)
Income tax benefit	—			(12,369		)	(12,369		)
December 31, 2016	(154,595		)	(99,169		)	(253,764		)
Other comprehensive income before reclassifications ⁽²⁾	77,050			36,593			113,643
Amounts reclassified from accumulated other comprehensive income (loss)	—			3,344			3,344
Net current period other comprehensive income (loss)	77,050			39,937			116,987
Income tax expense	—			7,954			7,954
December 30, 2017	$	(77,545	)	$	(67,186	)	$	(144,731	)
⁽¹⁾ The impact of the foreign currency translation adjustment to other comprehensive income (loss) before reclassifications for fiscal year 2016 was primarily due to the effect of changes in foreign currency exchange rates of the Euro, British Pound, and Canadian Dollar and to a lesser extent due to the impact of changes in the Chinese Yuan Renminbi and Japanese Yen.
⁽²⁾ The impact of the foreign currency translation adjustment to other comprehensive income (loss) before reclassifications for fiscal year 2017 was primarily due to the effect of changes in foreign currency exchange rates of the Euro, British Pound, and Canadian Dollar and to a lesser extent due to the impact of changes in the Chinese Yuan Renminbi and Japanese Yen.
⁽³⁾ Foreign currency translation adjustment and other includes a non-significant amount of unrealized gains (losses) on available-for-sale marketable securities.

Nonredeemable Noncontrolling Interest

The Company has an investment in an entity whose financial results are consolidated in the Company’s financial statements, as it has the ability to exercise control over this entity. The interest of the noncontrolling party in this entity has been recorded as noncontrolling interest. The activity within the nonredeemable noncontrolling interest during 2017 was immaterial. In 2016 and 2015, the activity within the nonredeemable noncontrolling interest was a decrease of $2.1 million and an increase of $0.8 million, respectively.

Redeemable Noncontrolling Interest

In January 2013, the Company acquired a 75% ownership interest in Vital River, a commercial provider of research models and related services in China, for $24.2 million, net of $2.7 million of cash acquired. Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provided the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 25% of the entity for cash at its fair value beginning in January 2016.

The following table provides a rollforward of the fair value of the Company’s redeemable noncontrolling interest for fiscal year 2016:



	Redeemable Noncontrolling Interest
	(in thousands)
December 26, 2015	$	28,008
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	320
Foreign currency translation	(653		)
Change in fair value, included in additional paid-in capital	(1,690		)
July 7, 2016	$	25,985

On July 7, 2016, the Company purchased an additional 12% equity interest in Vital River for $10.8 million, resulting in total ownership of 87%. The Company recorded a $1.6 million gain in equity equal to the excess fair value of the 12% equity interest over the purchase price. Concurrent with the transaction, the original agreement was amended providing the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 13% equity interest at a contractually defined redemption value, subject to a redemption floor (embedded derivative). These rights are exercisable beginning in 2019 and are accelerated in certain events. The Company recorded a charge of $1.5 million in other income, net, equal to the excess fair value of the hybrid instrument (equity interest with an embedded derivative) over the fair value of the 13% equity interest. The redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value ($15.8 million as of December 30, 2017) and its carrying amount adjusted for net income (loss) attributable to the noncontrolling interest. As the noncontrolling interest holders have the ability to require the Company to purchase the remaining 13% interest, the noncontrolling interest is classified in the mezzanine section of the consolidated balance sheets, which is presented above the equity section and below liabilities. The agreement does not limit the amount that the Company could be required to pay to purchase the remaining 13% equity interest.

The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interest subsequent to the acquisition of the additional 12% equity interest on July 7, 2016:



	Fiscal Year
	2017		2016
	(in thousands)
Beginning balance ⁽¹⁾	$	14,659	$	25,985
Purchase of 12% equity interest	—		(12,360		)
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	916		357
Foreign currency translation	1,034		(818		)
Modification of 13% purchase option	—		1,495
Ending balance	$	16,609	$	14,659
⁽¹⁾ The beginning balance for fiscal year 2016 is comprised of the fair value amount of the redeemable noncontrolling interest at July 7, 2016.