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Changes in shareholders' equity Changes in shareholders' equity
 3 Months Ended
Mar. 29, 2015
Equity [Abstract]  
Changes in shareholders' equity
Changes in shareholders’ equity
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner except that the weighted average number of shares is increased to include dilutive securities. The following table provides a reconciliation of basic to diluted weighted average shares outstanding:
 
Three Months Ended
 
March 29, 2015
 
March 30, 2014
 
(Shares in thousands)
Basic
41,469

 
41,262

Dilutive effect of share-based awards
467

 
471

Dilutive effect of 3.875% Convertible Notes and warrants
5,359

 
4,016

Diluted
47,295

 
45,749


Weighted average shares that were antidilutive and therefore not included in the calculation of earnings per share were approximately 5.8 million and 6.5 million for the three months ended March 29, 2015 and March 30, 2014, respectively.
During periods in which the average market price of the Company's common stock is above the applicable conversion price of the Convertible Notes, or $61.32 per share, the impact of conversion would be dilutive and the dilutive effect of conversion of the Convertible Notes is reflected in diluted earnings per share. As described in Note 7, the Company has elected the net settlement method of accounting for these conversions, under which the Company will settle the principal amount of the Convertible Notes in cash, and settle the excess conversion value in shares. As a result, in these periods, under the treasury stock method, the Company calculates the number of shares issuable under the terms of the Convertible Notes based on the average market price of the stock during the period, and includes that number in the total diluted shares outstanding for the period. 
In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge and warrant agreements. The convertible note hedge economically reduces the dilutive impact of the Convertible Notes. However, applicable accounting guidance requires the Company to separately analyze the impact of the warrant agreements on diluted weighted average shares outstanding, while excluding the impact of the convertible note hedge agreements because it would be anti-dilutive. The reductions in diluted shares that would result from including the anti-dilutive impact of the convertible note hedges would have been 3.1 million and 2.5 million for the three months ended March 29, 2015 and March 30, 2014, respectively. The treasury stock method is applied when the warrants are in-the-money and assumes the proceeds from the exercise of the warrants are used to repurchase shares based on the average stock price during the period. The strike price of the warrants is approximately $74.65 per share of common stock. Shares issuable upon exercise of the warrants that were included in the total diluted shares outstanding were 2.3 million and 1.6 million for the three months ended March 29, 2015 and March 30, 2014, respectively.
In 2007, the Company’s Board of Directors authorized the repurchase of up to $300 million of outstanding Company common stock. Repurchases of Company stock under the Board authorization may be made from time to time in the open market and may include privately-negotiated transactions as market conditions warrant and subject to regulatory considerations. The stock repurchase program has no expiration date and the Company’s ability to execute on the program will depend on, among other factors, cash requirements for acquisitions, cash generation from operations, debt repayment obligations, market conditions and regulatory requirements. In addition, under the Company’s senior credit agreements, the Company is subject to certain restrictions relating to its ability to repurchase shares in the event the Company’s consolidated leverage ratio (generally, the ratio of Consolidated Total Indebtedness to Consolidated EBITDA, as defined in the senior credit agreements) exceeds certain levels, which may limit the Company’s ability to repurchase shares under this Board authorization. Through March 29, 2015, no shares have been purchased under this Board authorization.
The following tables provide information relating to the changes in accumulated other comprehensive (loss) income, net of tax, for the three months ended March 29, 2015 and March 30, 2014:
 
 
Cash Flow Hedges
 
Pension and Other Postretirement Benefit Plans
 
Foreign Currency Translation Adjustment
 
Accumulated Other Comprehensive (Loss) Income
 
(Dollars in thousands)
Balance as of December 31, 2014
$
—

 
$
(141,744
)
 
$
(119,151
)
 
$
(260,895
)
Other comprehensive income (loss) before reclassifications
243

 
810

 
(83,151
)
 
(82,098
)
Amounts reclassified from accumulated other comprehensive (loss) income
(199
)
 
1,096

 
—

 
897

Net current-period other comprehensive income (loss)
44

 
1,906

 
(83,151
)
 
(81,201
)
Balance at March 29, 2015
$
44

 
$
(139,838
)
 
$
(202,302
)
 
$
(342,096
)

 
Cash Flow Hedges
 
Pension and Other Postretirement Benefit Plans
 
Foreign Currency Translation Adjustment
 
Accumulated Other Comprehensive (Loss) Income
 
(Dollars in thousands)
Balance at December 31, 2013
$
—

 
$
(97,037
)
 
$
(13,818
)
 
$
(110,855
)
Other comprehensive income (loss) before reclassifications
113

 
(159
)
 
4,051

 
4,005

Amounts reclassified from accumulated other comprehensive (loss) income
(43
)
 
783

 
—

 
740

Net current-period other comprehensive income
70

 
624

 
4,051

 
4,745

Balance at March 30, 2014
$
70

 
$
(96,413
)
 
$
(9,767
)
 
$
(106,110
)

  
The following table provides information relating to the reclassifications of losses/(gain) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three months ended March 29, 2015 and March 30, 2014:
 
 
Three Months Ended
 
March 29, 2015
 
March 30, 2014
 
(Dollars in thousands)
(Gains) losses on foreign exchange contracts:
 
 
 
Cost of goods sold
$
(209
)
 
$
(77
)
Total before tax
(209
)
 
(77
)
Tax benefit
10

 
34

Net of tax
$
(199
)
 
$
(43
)
Amortization of pension and other postretirement benefit items:
 
 
 
Actuarial losses (1)
$
1,606

 
$
1,102

Prior-service costs(1)
—

 
(5
)
Total before tax
1,606

 
1,097

Tax expense
(510
)
 
(314
)
Net of tax
$
1,096

 
$
783

 
 
 
 
Total reclassifications, net of tax
$
897

 
$
740


(1)
These accumulated other comprehensive (loss) income components are included in the computation of net benefit cost of pension and other postretirement benefit plans (see Note 12 for additional information).