Note 3 - Earnings Per Share

9 Months Ended

Oct. 02, 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. 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. 2, 2016		Oct. 4, 2015		Oct. 2, 2016		Oct. 4, 2015
Earnings Per Share

Basic Earnings Per Share
Distributed Earnings	$	0.06	$	0.05	$	0.10	$	0.13
Undistributed Earnings		0.19		0.26		0.66		0.69
Total	$	0.25	$	0.31	$	0.76	$	0.82

Diluted Earnings Per Share
Distributed Earnings	$	0.06	$	0.05	$	0.10	$	0.13
Undistributed Earnings		0.19		0.26		0.66		0.69
Total	$	0.25	$	0.31	$	0.76	$	0.82

Basic Earnin gs Per Share	$	0.25	$	0.31	$	0.76	$	0.82
Diluted Earnings Per Share	$	0.25	$	0.31	$	0.76	$	0.82

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

	Three Months Ended				Nine Months Ended
	Oct. 2, 2016		Oct. 4, 2015		Oct. 2, 2016		Oct. 4, 2015
			(In millions)
Net Income	$	0.1	$	0.5	$	0.4	$	1.2

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

	Three Months Ended				Nine Months Ended
	Oct. 2, 2016		Oct. 4, 2015		Oct. 2, 2016		Oct. 4, 2015
			(In thousands)
Weighted Average Shares Outstanding		64,241		64,359		64,721		64,596
Participating Securities		564		1,495		564		1,495
Shares for Basic Earnings Per Share		64,805		65,854		65,285		66,091
Dilutive Effect of Stock Options		37		53		37		48
Shares for Diluted Earnings Per Share		64,842		65,907		65,322		66,139

For all periods presented, there were no stock options or participating securities excluded from the computation of diluted EPS.