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
	2018		2017			2016
	(in thousands)
Numerator:
Income from continuing operations, net of income taxes	$	227,218	$	125,586		$	156,086
Income (loss) from discontinued operations, net of income taxes	1,506		(137		)	280
Less: Net income attributable to noncontrolling interests	2,351		2,094			1,601
Net income attributable to common shareholders	$	226,373	$	123,355		$	154,765

Denominator:
Weighted-average shares outstanding—Basic	47,947		47,481			47,014
Effect of dilutive securities:
Stock options, restricted stock, restricted stock units and performance share units	1,071		1,083			944
Weighted-average shares outstanding—Diluted	49,018		48,564			47,958

Options to purchase 0.5 million shares, 0.6 million shares, and 0.8 million shares for fiscal years 2018, 2017 and 2016, respectively were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Basic weighted-average shares outstanding for fiscal year 2018 and for both fiscal years 2017 and 2016 excluded the impact of 1.0 million shares and 1.1 million shares, respectively, 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 in fiscal year 2017, and did not repurchase any shares in fiscal years 2018 and 2016. As of December 29, 2018, the Company had $129.1 million remaining on the authorized stock repurchase program.

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 0.1 million shares for $13.8 million, 0.2 million shares for $16.3 million, and 0.2 million shares for $12.3 million in fiscal years 2018, 2017 and 2016, respectively, from such netting.

In October 2018, the Company’s Board of Directors approved the cancellation and return to the Company’s authorized and unissued capital stock of 40.2 million treasury shares totaling $1.7 billion, reducing treasury stock on the Company’s consolidated balance sheet. The Company allocated the excess of the repurchase price over the par value of shares acquired to reduce both retained earnings and additional paid-in-capital for $0.5 billion and $1.2 billion, respectively.

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			Pension and Other Post-Retirement Benefit Plans			Total
	(in thousands)
December 31, 2016	$	(154,595	)	$	(99,169	)	$	(253,764	)
Other comprehensive income before reclassifications ⁽¹⁾	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		)
Other comprehensive loss before reclassifications ⁽¹⁾	(27,352		)	(1,659		)	(29,011		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,477			2,477
Net current period other comprehensive (loss) income	(27,352		)	818			(26,534		)
Amount reclassified from accumulated other comprehensive loss due to the adoption of ASU 2018-02 (See Note 1)	—			3,330			3,330
Income tax (benefit) expense	(2,698		)	806			(1,892		)
December 29, 2018	$	(102,199	)	$	(70,504	)	$	(172,703	)
⁽¹⁾ The impact of the foreign currency translation adjustment to other comprehensive income (loss) before reclassifications 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.

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 fiscal years 2018 and 2017 was not significant. In 2016, the activity within the nonredeemable noncontrolling interest was a decrease of $2.1 million.

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
Purchase of 12% equity	$	(12,360	)
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	357
Foreign currency translation	(818		)
Modification of 13% purchase option	1,495
December 31, 2016	$	14,659

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 ($18.5 million as of December 29, 2018) 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:



	Fiscal Year
	2018			2017
	(in thousands)
Beginning balance	$	16,609		$	14,659
Total gains or losses (realized/unrealized):
Net income attributable to noncontrolling interest	800			916
Adjustment to redemption value	2,069			—
Foreign currency translation	(953		)	1,034
Ending balance	$	18,525		$	16,609