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Changes in shareholders' equity
 3 Months Ended
Mar. 27, 2016
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 27, 2016
 
March 29, 2015
 
(Shares in thousands)
Basic
41,647

 
41,469

Dilutive effect of share-based awards
519

 
467

Dilutive effect of 3.875% Convertible Notes and warrants
6,616

 
5,359

Diluted
48,782

 
47,295


Weighted average shares that were antidilutive and therefore not included in the calculation of earnings per share were 5.2 million and 5.8 million for the three months ended March 27, 2016 and March 29, 2015, respectively.
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 warrants issued under the warrant agreements on diluted weighted average shares outstanding, without giving effect to the anti-dilutive impact of the call options. The reduction in diluted shares that would result from including the anti-dilutive impact of the call options would have been 3.6 million and 3.1 million for the three months ended March 27, 2016 and March 29, 2015, 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 exercise 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 3.0 million and 2.3 million for the three months ended March 27, 2016 and March 29, 2015, respectively.
See Note 15 for information regarding the reduction in the outstanding principal amount of Convertible Notes as a result of the Company's exchange of cash and shares of common stock and the related reduction in the number of call options and warrants outstanding under the convertible note hedge and warrant agreements.
The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 27, 2016 and March 29, 2015:
 
 
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, 2015
$
(2,491
)
 
$
(138,887
)
 
$
(229,746
)
 
$
(371,124
)
Other comprehensive income (loss) before reclassifications
(50
)
 
182

 
20,476

 
20,608

Amounts reclassified from accumulated other comprehensive (loss) income
1,530

 
1,056

 
—

 
2,586

Net current-period other comprehensive income
1,480

 
1,238

 
20,476

 
23,194

Balance as of March 27, 2016
$
(1,011
)
 
$
(137,649
)
 
$
(209,270
)
 
$
(347,930
)

 
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, 2014
$
—

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

 
810

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

 
—

 
897

Net current-period other comprehensive (loss) income
44

 
1,906

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

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

  
The following table provides information relating to the reclassifications of losses/(gains) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three months ended March 27, 2016 and March 29, 2015:
 
 
Three Months Ended
 
March 27, 2016
 
March 29, 2015
 
(Dollars in thousands)
Losses (gains) on foreign exchange contracts:
 
 
 
Cost of goods sold
$
1,871

 
$
(209
)
Total before tax
1,871

 
(209
)
Tax (benefit) expense
(341
)
 
10

Net of tax
$
1,530

 
$
(199
)
Amortization of pension and other postretirement benefit items:
 
 
 
Actuarial losses (1)
$
1,622

 
$
1,606

Prior-service costs(1)
14

 
—

Total before tax
1,636

 
1,606

Tax benefit
(580
)
 
(510
)
Net of tax
$
1,056

 
$
1,096

 
 
 
 
Total reclassifications, net of tax
$
2,586

 
$
897


(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 11 for additional information).