EARNINGS PER SHARE

12 Months Ended

Dec. 31, 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 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
	December 31, 2022		January 1, 2022		January 2, 2021
Net income	$	89,693	$	212,602	$	155,801

Weighted average common shares outstanding — basic	86,521		87,425		86,978
Effect of dilutive securities	674		1,241		869
Weighted average common shares outstanding — diluted	87,195		88,666		87,847

Earnings per share
Basic	$	1.04	$	2.43	$	1.79
Diluted	$	1.03	$	2.40	$	1.77

Outstanding stock-based awards representing 0.5 million, less than 0.1 million, and 0.2 million shares of common stock were excluded from the calculations of diluted earnings per share in 2022, 2021, and 2020, respectively, because the effect of their inclusion would have been antidilutive to those years.