Note 2—Share Data

The number of common shares outstanding totaled 81.1 million and 81.5 million at September 29, 2018 and December 30, 2017, respectively. Basic income per share is computed by dividing income available to common stockholders by the weighted‑average number of common shares outstanding during the period. Diluted income per share includes the additional effect of all potentially dilutive securities, which includes dilutive share options granted under stock‑based compensation plans.

A reconciliation of shares for basic and diluted net income per share is set forth below (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2018		2017		2018		2017
Net income	$	17,030	$	11,271	$	32,594	$	11,427
Weighted average common shares outstanding—basic		81,147		81,479		81,238		81,460
Effect of dilutive securities		1,777		1,509		1,708		1,555
Weighted average common shares outstanding—diluted		82,924		82,988		82,946		83,015
Earnings per share
Basic	$	0.21	$	0.14	$	0.40	$	0.14
Diluted	$	0.21	$	0.14	$	0.39	$	0.14

Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock options representing 0.1 million and 0.2 million shares of common stock were outstanding for both the three and nine months ended September 29, 2018 and September 30, 2017, respectively, but were excluded from the computation of diluted earnings per share as their effect would be anti‑dilutive.

On May 17, 2016, our Board of Directors approved a dividend. In connection with the dividend, pursuant to anti‑dilution provisions in the 2012 Equity and Performance Incentive Plan (as amended and restated June 20, 2018), the “2012 Plan”, the option strike price on outstanding options was reduced by the lesser of 70% of the original strike price or the per share amount of the dividend. Any difference between the reduction in strike price and dividend was paid in cash immediately for vested options. For holders of unvested options as of May 17, 2016, we will pay a dividend which accrues over the requisite service period as the options vest. We paid $2.4 million and $2.7 million to vested option holders in the three months ended September 29, 2018 and September 30, 2017, respectively. We paid $2.5 million and $2.8 million to vested option holders in the nine months ended September 29, 2018 and September 30, 2017, respectively. We will pay the remaining $0.6 million of the original $7.9 million to holders of unvested options in fiscal year 2019. At September 29, 2018, $0.1 million was accrued. The payment of future dividends is subject to restrictions under the Credit Facility we entered into in May 2016 with certain lenders and Bank of America, N.A., as administrative agent, as amended, which we refer to as the “Credit Facility.”