EARNINGS PER SHARE

12 Months Ended

Jan. 02, 2021

Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the effect of all potentially dilutive securities, which include dilutive stock options and awards.

The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data):


	Fiscal Year Ended
	January 2, 2021		December 28, 2019		December 29, 2018
Net income	$	155,801	$	50,434	$	57,763

Weighted average common shares outstanding — basic	86,978		85,088		81,777
Effect of dilutive securities	869		1,259		1,742
Weighted average common shares outstanding — diluted	87,847		86,347		83,519

Earnings per share
Basic	$	1.79	$	0.59	$	0.71
Diluted	$	1.77	$	0.58	$	0.69

Outstanding stock-based awards representing 0.2 million, 0.8 million, and 0.2 million shares of common stock were excluded from the calculations of diluted earnings per share in 2020, 2019, and 2018, respectively, because the effect of their inclusion would have been antidilutive to those years. In addition, 1.4 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share in 2018 because these units were not considered to be contingent outstanding shares.