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| 29 Illustrative Share Count Roll Forward Below find an illustrative example of the diluted share count. There are many other factors that effect share count, listed below. You should not refer to this table as guidance for actual diluted share count. Other factors affecting diluted share count, which have been assumed to remain constant in the analysis above: Prices of Sealy common stock remain constant No additional conversions of convertible debt No additional grants, forfeitures or cancellations of equity-based incentive awards to employees or directors Sealy reports net income from continuing operations in each period (net loss would result in diluted shares equal to basic shares) No repurchases of outstanding shares Assumes convertible notes have a dilutive effect on earnings per share Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Basic Share Count 100,918 100,918 100,918 100,918 100,918 Effect of dilutive securities: Convertible notes 208,290 212,456 216,705 221,039 225,460 Stock options 683 683 683 683 683 Restricted share units 7,114 8,291 9,354 10,139 10,750 Other 539 539 539 539 539 Diluted Share Count 317,544 322,887 328,199 333,318 338,350 Beginning Diluted Share Count 317,544 322,887 328,199 333,318 Incremental Shares for Adjustment in Unrecognized Compensation Cost 1,177 1,063 785 611 Incremental Shares for PIK Interest on Convertible Notes 1 4,166 4,249 4,334 4,421 Ending Diluted Share Count 322,887 328,199 333,318 338,350 1 Gives effect to number of PIK notes to be included on a weighted average basis. |