7. EARNINGS PER SHARE

The number of common shares outstanding totaled 84.8 million and 84.2 million at June 29, 2019 and December 29, 2018, 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 stock 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				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Net income	$	22,223	$	18,825	$	24,390	$	15,564
Weighted-average common shares outstanding—basic		84,577		81,147		84,387		81,283
Effect of dilutive securities		1,650		1,785		1,655		1,673
Weighted-average common shares outstanding—diluted		86,227		82,932		86,042		82,956
Earnings per share
Basic	$	0.26	$	0.23	$	0.29	$	0.19
Diluted	$	0.26	$	0.23	$	0.28	$	0.19

Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Outstanding stock options representing 0.5 million shares of common stock were excluded from the calculation of diluted earnings per share for the three months ended June 29, 2019, and outstanding stock options representing 1.1 million and 0.1 million shares of common stock were excluded from the calculation of diluted earnings per share for the six months ended June 29, 2019 and June 30, 2018, respectively, because their effect would be anti‑dilutive. No outstanding stock options were excluded from the calculation of diluted earnings per share for the three months ended June 30, 2018. In addition, 1.3 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for both the three and six months ended June 29, 2019, because these units were not considered to be contingent outstanding shares.