SHAREHOLDERS’ EQUITY

Changes in shareholders’ equity

Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows:



	Thirteen weeks ended
(in thousands)	March 31, 2019			April 1, 2018

Common stock shares
Beginning balance	40,054			41,098
Purchases and retirement of common stock	(234		)	—
Issuances under equity plans, including tax benefits	308			218
Stock-based compensation	24			18
Ending balance	40,152			41,334

Common stock amount
Beginning balance	$	1		$	1
Current period activity	—			—
Ending balance	1			1

Retained earnings
Beginning balance	606,087			561,650
Net income	8,276			8,755
Purchases and retirement of common stock (1)	(5,303		)	—
Issuances under equity plans, including tax benefits	(1,057		)	(1,691		)
Stock-based compensation	3,606			3,409
Change in accounting standard cumulative-effect adjustment (2)	—			1,525
Ending balance	611,609			573,648

Accumulated other comprehensive loss
Beginning balance, net of tax	(14,649		)	(6,804		)
Foreign currency translation adjustment	1,326			(1,384		)
Change in accounting standard cumulative-effect adjustment (2)	—			(1,525		)
Ending balance, net of tax	(13,323		)	(9,713		)

Total shareholders’ equity ending balance	$	598,287		$	563,936

(1)

Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered.

(2)

As a result of our adoption of the accounting standard for equity investments issued by the FASB in January 2016, $1.5 million in unrealized gains, net of tax on available-for-sale equity securities were reclassified from accumulated other comprehensive loss to retained earnings as of the beginning of fiscal 2018. There were no material reclassifications out of accumulated other comprehensive loss during the thirteen weeks ended March 31, 2019.