EARNINGS PER SHARE

9 Months Ended

Oct. 01, 2022

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 other stock-based 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):


	Three Months Ended				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Net income	$	45,520	$	52,967	$	117,431	$	139,721

Weighted-average common shares outstanding—basic	86,208		87,526		86,580		87,343
Effect of dilutive securities	623		1,224		725		1,293
Weighted-average common shares outstanding—diluted	86,831		88,750		87,305		88,636

Earnings per share
Basic	$	0.53	$	0.61	$	1.36	$	1.60
Diluted	$	0.52	$	0.60	$	1.35	$	1.58

Effects of potentially dilutive securities are presented only in periods in which they are dilutive. For the three and nine months ended October 1, 2022, outstanding stock-based awards representing 0.5 million and 0.4 million shares of common stock, respectively, were excluded from the calculation of diluted earnings per share, because their effect would be anti-dilutive. No outstanding stock-based awards were excluded from the calculation of diluted earnings per share for the three months ended October 2, 2021. For the nine months ended October 2, 2021, outstanding stock-based awards representing less than 0.1 million shares of common stock were excluded from the calculation of diluted earnings, because their effect would be anti-dilutive.