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Earning Per Share
 6 Months Ended
Jul. 03, 2011
Earning Per Share [Abstract]  
EARNING PER SHARE
9.   EARNINGS PER SHARE
On January 1, 2009, we adopted the provisions of FASB’s guidance for determining whether instruments granted in share-based payment transactions are participating securities. The guidance requires that all outstanding unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (such as restricted stock awards granted by us) be considered participating securities. Because restricted stock awards are participating securities, we are required to apply the two-class method of computing basic and diluted earnings per share (the “Two-Class Method”).
Basic EPS is determined using the Two-Class Method and is computed by dividing earnings attributable to Ultralife common shareholders by the weighted-average shares outstanding during the period. The Two-Class Method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted EPS includes the dilutive effect of securities, if any, and reflects the more dilutive EPS amount calculated using the treasury stock method or the Two-Class Method. For the three- and six-month periods ended July 3, 2011 and June 27, 2010, both the Two-Class Method and the treasury stock method calculations for diluted EPS yielded the same result.
The computation of basic and diluted earnings per share is summarized as follows:
                                 
    Three-Month Periods Ended     Six-Month Periods Ended  
    July 3,     June 27,     July 3,     June 27,  
    2011     2010     2011     2010  
Net Income (Loss) from continuing operations attributable to Ultralife
  $ 2,578     $ 583     $ (1,455 )   $ 1,815  
Net Income (Loss) from continuing operations attributable to participating securities (unvested restricted stock awards) (2,000, 10,000, -0- and 25,000 shares, respectively)
    —       —       —       (3 )
 
                       
Net Income (Loss) from continuing operations attributable to Ultralife common shareholders (a)
    2,578       583       (1,455 )     1,812  
Effect of Dilutive Securities:
                               
Convertible Notes Payable
    —       —       —       —  
 
                       
Net Income (Loss) from continuing operations attributable to Ultralife common shareholders — Adjusted (b)
  $ 2,578     $ 583     $ (1,455 )   $ 1,812  
 
                       
 
                               
Net Income (Loss) from discontinued operations attributable to Ultralife common shareholders (c)
  $ (2,139 )   $ (563 )   $ (3,796 )   $ (1,508 )
Effect of Dilutive Securities:
                               
Convertible Notes Payable
    —       —       —       —  
 
                       
Net Income (Loss) from discontinued operations attributable to Ultralife common shareholders — Adjusted (d)
  $ (2,139 )   $ (563 )   $ (3,796 )   $ (1,508 )
 
                       
 
                               
Average Common Shares Outstanding — Basic (e)
    17,296,000       17,164,000       17,286,000       17,089,000  
Effect of Dilutive Securities:
                               
Stock Options / Warrants
    12,000       5,000       —       5,000  
Convertible Notes Payable
    —       —       —       —  
 
                       
Average Common Shares Outstanding — Diluted (f)
    17,308,000       17,169,000       17,286,000       17,094,000  
 
                       
 
                               
EPS — Basic (a/e) — continuing operations
  $ 0.15     $ 0.03     $ (0.08 )   $ 0.11  
EPS — Basic (c/e) — discontinued operations
  $ (0.12 )   $ (0.03 )   $ (0.22 )   $ (0.09 )
EPS — Diluted (b/f) — continuing operations
  $ 0.15     $ 0.03     $ (0.08 )   $ 0.11  
EPS — Diluted (d/f) — discontinued operations
  $ (0.12 )   $ (0.03 )   $ (0.22 )   $ (0.09 )
There were 1,820,419 and 1,773,898 outstanding stock options, warrants and restricted stock awards for the three-month periods ended July 3, 2011 and June 27, 2010, respectively, that were not included in EPS as the effect would be anti-dilutive. We also had 219,398 shares of common stock for the three-month period ended June 27, 2010, reserved under convertible notes payable, which were not included in EPS as the effect would be anti-dilutive. The dilutive effect of 180,177 and 47,500 outstanding stock options, warrants and restricted stock awards were included in the dilution computation for the three-month periods ended July 3, 2011 and June 27, 2010, respectively.
There were 2,000,596 and 1,773,898 outstanding stock options, warrants and restricted stock awards for the six-month periods ended July 3, 2011 and June 27, 2010, respectively, that were not included in EPS as the effect would be anti-dilutive. We also had 221,854 shares of common stock for the six-month period ended June 27, 2010, reserved under convertible notes payable, which were not included in EPS as the effect would be anti-dilutive. The dilutive effect of -0- and 47,500 outstanding stock options, warrants and restricted stock awards were included in the dilution computation for the six-month periods ended July 3, 2011 and June 27, 2010, respectively.