E-Z-GO 2013 Annual Report Download - page 76

63 Textron Inc. Annual Report • 2013
(In thousands) 2013 2012 2011
Beginning balance 271,263 278,873 275,739
Exercise of stock options 1,333 1,159 177
Issued to Textron Savings Plan 1,921 2,159 2,686
Exercise of warrants 7,435 — —
Stock repurchases — (11,103) —
Other 107 175 271
Ending balance 282,059 271,263 278,873
Earnings per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common
shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of
common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities
as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock,
including stock options, restricted stock units and, prior to the maturity of our convertible notes on May 1, 2013, the shares that
could have been issued upon the conversion of the notes and upon the exercise of the related warrants.
The weighted-average shares outstanding for basic and diluted EPS are as follows:
(In thousands) 2013 2012 2011
Basic weighted-average shares outstanding 279,299 280,182 277,684
Dilutive effect of:
Convertible notes and warrants 4,801 14,053 28,869
Stock options and restricted stock units 328 428 702
Diluted weighted-average shares outstanding 284,428 294,663 307,255
The dilutive effect of the convertible notes and warrants decreased significantly in 2013 from prior years due to the maturity of our
convertible notes as described in Note 7. We intended to settle the face value of the notes in cash and the excess of the conversion
value over the face value in cash and/or shares of our common stock; accordingly, only the shares of our common stock potentially
issuable with respect to the excess of the notes’ conversion value over the face amount were considered in calculating diluted EPS.
The call options purchased in connection with the issuance of the convertible notes and the capped call transaction were excluded
from the calculation of diluted EPS as their impact was always anti-dilutive.
In 2013, 2012 and 2011, stock options to purchase 5 million, 7 million and 5 million shares, respectively, of common stock
outstanding are excluded from our calculation of diluted weighted-average shares outstanding as their effect would have been anti-
dilutive.
Accumulated Other Comprehensive Loss
The components of Accumulated Other Comprehensive Loss are presented below:
(In millions)
Foreign
Currency
Translation
Adjustments
Pension and
Postretirement
Benefits
Adjustments
Deferred
Gains/Losses
on Hedge
Contracts
Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2011 $ 79 $ (1,711) $ 7 $ (1,625)
Other comprehensive loss before reclassifications 2 (230) 11 (217)
Amounts reclassified from Accumulated Other
Comprehensive Loss — 84 (12) 72
Other comprehensive loss 2 (146) (1) (145)
Balance at December 29, 2012 81 (1,857) 6 (1,770)
Other comprehensive income before reclassifications 12 626 (15) 623
Amounts reclassified from Accumulated Other
Comprehensive Loss — 121 (1) 120
Other comprehensive income 12 747 (16) 743
Balance at December 28, 2013 $ 93 $ (1,110) $ (10) $ (1,027)