Net Income Per Share

3 Months Ended

Apr. 04, 2017

3. NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if in-the-money stock options issued by us to sell common stock at set prices were exercised and if restrictions on restricted stock units issued by us were to lapse (collectively, equity awards) using the treasury stock method. Performance-based restricted stock units have been excluded from the diluted income per share computation because the performance-based criteria have not yet been met.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands):


	For The Thirteen Weeks Ended
	April 4, 2017		March 29, 2016
Numerator:
Net income		$9,266		$11,644

Denominator:
Weighted-average shares outstanding – basic		21,932		24,278
Dilutive effect of equity awards		381		413

Weighted-average shares outstanding – diluted		22,313		24,691

For the thirteen weeks ended April 4, 2017 and March 29, 2016, there were approximately 0.5 million and 0.3 million shares of common stock equivalents, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive.