Note 3 - Earnings Per Share

3 Months Ended

Apr. 03, 2016

NOTE 3 – EARNINGS 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 when the Company is in an income position. Awards of performance shares are not included in basic or diluted EPS until the underlying performance condition has been satisfied.

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
	April 3, 2016		April 5, 2015
Earnings Per Share :

Basic Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04
Undistributed Earnings		0.15		0.15
Total	$	0.20	$	0.19

Diluted Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04
Undistributed Earnings		0.15		0.15
Total	$	0.20	$	0.19

Basic earnings per share	$	0.20	$	0.19
Diluted earnings per share	$	0.20	$	0.19

The following table presents net income that was attributable to participating securities.

	Three Months Ended
	April 3, 2016		April 5, 2015
	(In millions)
Net Income	$	0.1	$	0.3

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

	Three Months Ended
	April 3, 2016		April 5, 2015
	(In thousands)
Weighted Average Shares Outstanding		65,107		64,930
Participating Securities		578		1,490
Shares for Basic Earnings Per Share		65,685		66,420
Dilutive Effect of Stock Options		38		51
Shares for Diluted Earnings Per Share		65,723		66,471

For the three months ended April 3, 2016 and April 5, 2015, there were no stock options or participating securities excluded from the computation of diluted EPS.