Earnings Per Share

3 Months Ended

Apr. 01, 2017

14.	EARNINGS PER SHARE

The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share, which requires that non-vested restricted stock containing non-forfeitable dividend rights should be treated as participating securities pursuant to the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. The amounts of distributed and undistributed earnings allocated to participating securities for the 13-week period ended April 2, 2016 were insignificant and did not materially impact the calculation of basic or diluted EPS. There was no unvested restricted stock that remained outstanding at April 1, 2017.

Basic EPS is computed by dividing Net income available to common stockholders by the weighted-average number of shares of common stock outstanding, which includes vested restricted shares, vested restricted stock units, and non-vested restricted shares outstanding for the year.

Diluted EPS is computed using the weighted average number of shares of common stock, plus the effect of potentially dilutive securities. Stock options, unvested restricted shares, restricted stock units, and employee stock purchase plan deferrals are considered potentially dilutive securities.

The following table sets forth the computation of basic and diluted earnings per share:

	13-Weeks Ended
	April 1, 2017		April 2, 2016
Numerator:
Net income (in thousands)	$	26,816	$	13,311
Denominator:
Weighted-average common shares outstanding		221,364,013		169,121,722
Dilutive effect of share-based awards		4,959,397		2,378,210
Weighted-average dilutive shares outstanding		226,323,410		171,499,932
Basic earnings per share	$	0.12	$	0.08
Diluted earnings per share	$	0.12	$	0.08