Earnings Per Share

12 Months Ended

Jan. 03, 2021

EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) by the weighted average common shares outstanding, including participating securities outstanding, during the period as depicted 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. Income attributable to non-controlling interest is included in the computation of basic and diluted earnings per share, where applicable.

The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of common 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:


	Fiscal Year
Earnings (Loss) Per Share	2020		2019		2018
Basic earnings (loss) per share:
Distributed earnings	$	0.10	$	0.26	$	0.26
Undistributed earnings (loss)	(1.33)		1.08		0.58
Total	$	(1.23)	$	1.34	$	0.84

Diluted earnings (loss) per share:
Distributed earnings	$	0.10	$	0.26	$	0.26
Undistributed earnings (loss)	(1.33)		1.08		0.58
Total	$	(1.23)	$	1.34	$	0.84

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


	Fiscal Year
	2020		2019		2018
	(in millions)
Net income attributable to participating securities	$	—	$	0.6	$	0.5

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


	Fiscal Year
	2020	2019	2018
	(in thousands)
Weighted average shares outstanding	58,110	58,475	58,995
Participating securities	437	468	549
Shares for basic earnings per share	58,547	58,943	59,544
Dilutive effect of stock options	—	5	22
Shares for diluted earnings per share	58,547	58,948	59,566

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