Net Income Per Common Share

3 Months Ended

Jul. 01, 2017

Net income per common share:

Net Income Per Common Share

2. Net Income Per Common Share

Basic net income per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding.

Diluted net income per common share is computed by dividing net income by the sum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options.

The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per common share:

	Three Months Ended
	July 1, 2017		July 2, 2016
Net income	$	21,809	$	18,040
Denominator for basic net income  per common share—weighted-average shares outstanding		23,805,138		23,320,579
Effect of dilution due to employee stock awards		384,237		306,172
Denominator for diluted net income per common share — weighted-average shares outstanding		24,189,375		23,626,751
Basic net income per common share	$	0.92	$	0.77
Diluted net income per common share	$	0.90	$	0.76

At July 1, 2017, 221,500 employee stock options have been excluded from the calculation of diluted earnings per share. At July 2, 2016, 217,250 employee stock options have been excluded from the calculation of diluted earnings per share. The inclusion of these employee stock options would be anti-dilutive.

The adoption of ASU 2016-09 on April 2, 2017 resulted in the Company removing the excess tax benefits from the assumed proceeds available to repurchase shares when calculating diluted earnings per share on a prospective basis. The revised calculation increased the diluted weighted average common shares outstanding by 87,089 shares in the period of adoption.