Note 3 - Earnings Per Share

9 Months Ended

Oct. 04, 2015

NOTE 3 – EARNINGS (LOSS) PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following tables show distributed and undistributed earnings:

	Three Months Ended					Nine Months Ended
	Oct. 4, 2015		Sept. 28, 2014			Oct. 4, 2015		Sept. 28, 2014
Earnings (Loss) Per Share

Basic Earnings (Loss) Per Share
Distributed Earnings	$	0.05	$	0.03		$	0.13	$	0.10
Undistributed Earnings		0.26		(0.04	)		0.69		0.15
Total	$	0.31	$	(0.01	)	$	0.82	$	0.25

Diluted Earnings (Loss) Per Share
Distributed Earnings	$	0.05	$	0.03		$	0.13	$	0.10
Undistributed Earnings		0.26		(0.04	)		0.69		0.15
Total	$	0.31	$	(0.01	)	$	0.82	$	0.25

Basic Earnings (Loss) Per Share	$	0.31	$	(0.01	)	$	0.82	$	0.25
Diluted Earnings (Loss) Per Share	$	0.31	$	(0.01	)	$	0.82	$	0.25

The following tables present net income (loss) that was attributable to participating securities:

	Three Months Ended				N i ne Months Ended
	Oct. 4, 2015		Sept. 28, 2014		Oct. 4, 2015		Sept. 28, 2014
			(In millions)
Net Income (Loss)	$	0.5	$	0.0	$	1.2	$	0.4

The weighted average shares outstanding for basic and diluted EPS were as follows:

	Three Months Ended				N i ne Months Ended
	Oct. 4, 2015		Sept. 28, 2014		Oct. 4, 2015		Sept. 28, 2014
			(In thousands)
Weighted Average Shares Outstanding		64,359		65,045		64,596		65,050
Participating Securities		1,495		1,420		1,495		1,420
Shares for Basic Earnings (Loss) Per Share		65,854		66,465		66,091		66,470
Dilutive Effect of Stock Options		53		0		48		84
Shares for Diluted Earnings (Loss) Per Share		65,907		66,465		66,139		66,554

For the three-month period ended September 28, 2014, no stock options have been included in the calculation of diluted EPS as the Company was in a net loss position and inclusion of these stock options would have been anti-dilutive. For all other periods presented, all outstanding stock options have been included in the calculation of diluted EPS