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.

Diluted 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 28,		September 29,		September 28,		September 29,
	2018		2017		2018		2017
Basic weighted average common shares outstanding		29,478,243		28,764,661		29,332,508		28,891,301

Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		684,045		928,103		507,508		1,008,159
Common stock issuable upon the exercise of stock options and SARs		2,431,071		2,264,901		2,374,403		2,354,767
Dilutive weighted average common shares outstanding		32,593,359		31,957,665		32,214,419		32,254,227

Approximately 1 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for both the quarter and nine months ended September 28, 2018, as compared to 41 thousand and 20 thousand for the quarter and nine months ended September 29, 2017, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.