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Net Income Per Share
 9 Months Ended
Sep. 29, 2019
Earnings Per Share [Abstract]  
Net Income Per Share
Net Income Per Share

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 common shares issuable upon exercise of stock options, vesting of restricted stock awards, and issuances of shares under the Employee Stock Purchase Plan (the "ESPP"), which are reflected in diluted net income per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive.
Net income per share for the three and nine months ended September 29, 2019 and September 30, 2018 are as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
 
(In thousands, except per share data)
Numerator:
 
 
 
 
 
 
 
Net income from continuing operations
$
12,529

 
$
16,310

 
$
26,211

 
$
17,861

Net loss from discontinued operations
—

 
(7,160
)
 
—

 
(8,351
)
Net income
12,529

 
9,150

 
26,211

 
9,510

Less: Net loss attributable to non-controlling interest in discontinued operations
—

 
(799
)
 
—

 
(799
)
Net income attributable to NETGEAR, Inc.
$
12,529

 
$
9,949

 
$
26,211

 
$
10,309

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average common shares - basic
30,933

 
31,802

 
31,221

 
31,634

Potentially dilutive common share equivalent
886

 
1,172

 
1,106

 
1,192

Weighted average common shares - dilutive
31,819

 
32,974

 
32,327

 
32,826

 
 
 
 
 
 
 
 
Basic net income per share
 
 
 
 
 
 
 
Net income from continuing operations
$
0.41

 
$
0.51

 
$
0.84

 
$
0.56

Net loss from discontinued operations attributable to NETGEAR, Inc.
—

 
(0.20
)
 
—

 
(0.23
)
Net income attributable to NETGEAR, Inc.
$
0.41

 
$
0.31

 
$
0.84

 
$
0.33

 
 
 
 
 
 
 
 
Diluted net income per share
 
 
 
 
 
 
 
Net income from continuing operations
$
0.39

 
$
0.49

 
$
0.81

 
$
0.54

Net loss from discontinued operations attributable to NETGEAR, Inc.
—

 
(0.19
)
 
—

 
(0.23
)
Net income attributable to NETGEAR, Inc.
$
0.39

 
$
0.30

 
$
0.81

 
$
0.31

 
 
 
 
 
 
 
 
Anti-dilutive employee stock-based awards, excluded
1,587

 
450

 
625

 
874