NOTE

– 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				Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
Earnings Per Share :

Basic Earnings Per Share:
Distributed Earnings	$	0.06	$	0.05	$	0.12	$	0.10
Undistributed Earnings		0.27		0.27		0.34		0.41
Total	$	0.33	$	0.32	$	0.46	$	0.51

Diluted Earnings Per Share:
Distributed Earnings	$	0.06	$	0.05	$	0.12	$	0.10
Undistributed Earnings		0.27		0.27		0.34		0.41
Total	$	0.33	$	0.32	$	0.46	$	0.51

Basic earnings per share	$	0.33	$	0.32	$	0.46	$	0.51
Diluted earnings per share	$	0.33	$	0.32	$	0.46	$	0.51

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

	Three Months Ended				Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
	(In millions)
Net Income Attributable to Participating Securities	$	0.2	$	0.2	$	0.3	$	0.3

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

	Three Months Ended				Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
	(In thousands)
Weighted Average Shares Outstanding		62,305		64,779		62,948		64,938
Participating Securities		484		588		484		588
Shares for Basic Earnings Per Share		62,789		65,367		63,432		65,526
Dilutive Effect of Stock Options		43		38		42		38
Shares for Diluted Earnings Per Share		62,832		65,405		63,474		65,564

For all periods presented, there were

options or participating securities excluded from the computation of diluted EPS.