Net Income Per Share

6 Months Ended

Jul. 03, 2022

9. Net Income Per Share

The computation of basic net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options, assumed vesting of restricted stock units (“RSUs”) and assumed vesting of performance share awards (“PSAs”). PSAs are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive.

A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts):


	Thirteen weeks ended				Twenty-six weeks ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Basic net income per share:
Net income	$	61,997	$	61,014	$	150,304	$	144,062
Weighted average shares outstanding		109,067		117,246		109,985		117,645
Basic net income per share	$	0.57	$	0.52	$	1.37	$	1.22
Diluted net income per share:
Net income	$	61,997	$	61,014	$	150,304	$	144,062
Weighted average shares outstanding - basic		109,067		117,246		109,985		117,645
Dilutive effect of share-based awards:
Assumed exercise of options to purchase shares		294		276		320		217
RSUs		258		309		401		393
PSAs		—		—		56		10
Weighted average shares and equivalent shares outstanding		109,619		117,831		110,762		118,265
Diluted net income per share	$	0.57	$	0.52	$	1.36	$	1.22

For the thirteen weeks ended July 3, 2022, the Company had 0.6 million options, 0.5 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirteen weeks ended July 4, 2021, the Company had 0.5 million options, 0.1 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met.

For the twenty-six weeks ended July 3, 2022, the Company had 0.5 million options, 0.5 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the twenty-six weeks ended July 4, 2021, the Company had 0.5 million options, 0.1 million RSUs, and 0.5 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met.