Net Income Per Common Share

9 Months Ended

Sep. 27, 2019

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 27,		September 28,		September 27,		September 28,
	2019		2018		2019		2018
Basic weighted average common shares outstanding		29,876,468		29,478,243		29,794,091		29,332,508

Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		350,842		684,045		270,776		507,508
Common stock issuable upon the exercise of stock options and share appreciation rights (SARs)		2,343,432		2,431,071		2,348,248		2,374,403
Dilutive weighted average common shares outstanding		32,570,742		32,593,359		32,413,115		32,214,419

Approximately 26 thousand shares and 39 thousand 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 27, 2019, respectively, as compared to 1 thousand shares and 2 thousand shares for the quarter and nine months ended September 28, 2018, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.