EARNINGS PER SHARE

9 Months Ended

Sep. 28, 2019

The number of common shares outstanding totaled 85.8 million and 84.2 million at September 28, 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						Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net income	$	21,302	$	17,030	$	45,692	$	32,594
Weighted-average common shares outstanding—basic	85,285		81,147		84,686		81,238
Effect of dilutive securities	1,088		1,777		1,466		1,708
Weighted-average common shares outstanding—diluted	86,373		82,924		86,152		82,946
Earnings per share
Basic	$	0.25	$	0.21	$	0.54	$	0.40
Diluted	$	0.25	$	0.21	$	0.53	$	0.39

Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Outstanding stock options representing 0.6 million and 0.1 million shares of common stock were excluded from the calculation of diluted earnings per share for the three months ended September 28, 2019 and September 29, 2018, respectively, and outstanding stock options representing 0.9 million and 0.1 million shares of common stock were excluded from the calculation of diluted earnings per share for the nine months ended September 28, 2019 and September 29, 2018, respectively, because their effect would be anti-dilutive. In addition, 1.3 million and 1.4 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share for the three and nine months ended September 28, 2019, because these units were not considered to be contingent outstanding shares.