Earnings Per Share

12 Months Ended

Jan. 02, 2022

Basic earnings per share was computed by dividing net income by the weighted-average number of common shares outstanding during the period less restricted unvested shares. Diluted earnings per share was computed by dividing net income by the weighted-average number of common shares outstanding plus all potentially dilutive common stock equivalents, primarily shares issuable upon the exercise of stock options using the treasury stock method. The following table reconciles the number of shares utilized in the earnings per share calculations for the fiscal years ended:


	January 2, 2022	January 3, 2021	December 29, 2019
	(In thousands)
Number of common shares—basic	116,165	111,514	110,827
Effect of dilutive securities:
Stock options	391	466	541
Restricted stock awards	118	105	133
Number of common shares—diluted	116,674	112,085	111,501
Number of potentially dilutive securities excluded from calculation due to antidilutive impact	487	220	364

Antidilutive securities include outstanding stock options with exercise prices and average unrecognized compensation cost in excess of the average fair market value of common stock for the related period. Antidilutive options were excluded from the calculation of diluted net income per share and could become dilutive in the future.