Net Income Per Share

9 Months Ended

Oct. 02, 2016

Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include outstanding stock options and unvested restricted stock awards, which are reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the estimated tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares.

Net income per share for the three and nine months ended October 2, 2016 and September 27, 2015 are as follows (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
Numerator:
Net income	$	21,119	$	15,099	$	53,742	$	26,777

Denominator:
Weighted average common shares - basic	32,913		31,979		32,688		33,473
Potentially dilutive common share equivalent	1,000		356		936		529
Weighted average common shares - dilutive	33,913		32,335		33,624		34,002

Basic net income per share	$	0.64	$	0.47	$	1.64	$	0.80
Diluted net income per share	$	0.62	$	0.47	$	1.60	$	0.79

Anti-dilutive employee stock-based awards, excluded	—		2,768		235		2,486