4. 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 (“RSUs”) issued by us were to lapse (collectively, equity awards) using the treasury stock method. Performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and we include these contingently issuable shares in our diluted net income calculation. Once theses performance-based RSUs vest, they are included in our basic net income per share calculation.

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				For the Thirty-Nine Weeks Ended
	October 2, 2018		October 3, 2017		October 2, 2018		October 3, 2017
Numerator:
Net income	$	8,516	$	2,389	$	40,125	$	21,294
Denominator:
Weighted-average shares outstanding – basic		21,118		21,354		20,861		21,620
Dilutive effect of equity awards		689		316		639		412
Weighted-average shares outstanding – diluted		21,807		21,670		21,500		22,032

For the thirteen weeks ended October 2, 2018, there were no anti-dilutive shares of common stock equivalents. For the thirteen weeks ended October 3, 2017, there were approximately 1.1 million shares of common stock equivalents that were excluded from the calculation of diluted net income per share because they are anti-dilutive. For the thirty-nine weeks ended October 2, 2018 and October 3, 2017, there were approximately 0.02 million and 0.5 million shares of common stock equivalents, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive.