2. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Dilutive net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2017		2016		2017		2016
Basic weighted average common shares outstanding		28,764,661		28,579,237		28,891,301		29,251,459

Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		928,103		1,472,927		1,008,159		1,327,491
Common stock issuable upon the exercise of stock options and SARs		2,264,901		2,323,333		2,354,767		2,291,271
Dilutive weighted average common shares outstanding		31,957,665		32,375,498		32,254,227		32,870,220

Approximately 0.9 million and 0.8 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and nine months ended September 29, 2017, respectively, as compared to 0.8 million and 0.9 million for the same periods in 2016, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.