Earnings Per Share

6 Months Ended

Jun. 29, 2020

(15) Earnings Per Share

The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share from continuing operations for the quarter and two quarters ended June 29, 2020 and July 1, 2019:

	Quarter Ended				Two Quarters Ended
	June 29, 2020		July 1, 2019		June 29, 2020		July 1, 2019
	(In thousands, except per share amounts)
Basic earnings:
Basic earnings	$	9,346	$	12,493	$	6,126	$	18,731
Diluted earnings:
Net income	$	9,346	$	12,493	$	6,126	$	18,731
Interest expense from Convertible Senior Notes, net of tax		—		2,780		—		—
Diluted earnings	$	9,346	$	15,273	$	6,126	$	18,731

Basic weighted average shares		106,295		105,470		105,990		104,893
Dilutive effect of performance-based restricted stock units, restricted stock units and stock options		1,190		637		1,441		967
Dilutive effect of assumed conversion of Convertible Senior Notes outstanding		—		25,938		—		—
Diluted shares		107,485		132,045		107,431		105,860
Earnings per share:
Basic	$	0.09	$	0.12	$	0.06	$	0.18
Diluted	$	0.09	$	0.12	$	0.06	$	0.18

PRUs, RSUs, and stock options to purchase 1,162 and 1,089 shares of common stock for the quarters ended June 29, 2020 and July 1, 2019, respectively, and 750 and 1,089 shares of common stock for the two quarters ended June 29, 2020 and July 1, 2019, respectively, were not included in the computation of diluted earnings per share. The PRUs were not included in the computation of diluted earnings per share because the performance conditions had not been met at June 29, 2020 and July 1, 2019, and for RSUs and stock options, the options’ exercise prices or the total expected proceeds under the treasury stock method was greater than the average market price of common shares during the applicable quarter and two quarters and, as a result, the impact would be anti-dilutive.

Outstanding warrants for the quarter and two quarters ended June 29, 2020 and July 1, 2019, to purchase common stock were not included in the computation of dilutive earnings per share because the strike price of the warrants to purchase the Company’s common stock were greater than the average market price of common shares during the applicable quarter, and therefore, the effect would be anti-dilutive.

For the quarter and two quarters ended June 29, 2020 and for the two quarters ended July 1, 2019, the effect of shares of common stock related to the Company’s Convertible Senior Notes, based on the if-converted method, were not included in the computation of dilutive earnings per share as the impact would be anti-dilutive.