Net Income Per Share

9 Months Ended

Dec. 24, 2016

11. Net Income Per Share

Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. Prior to fiscal year 2017, these potentially dilutive items consisted primarily of the tax affected outstanding stock options and awards (including restricted stock units and market stock units). As mentioned previously, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting in the current fiscal quarter. All adjustments related to the adoption are shown as of the beginning of the fiscal year. Therefore, in the current fiscal year, these potentially dilutive items consist primarily of outstanding stock options and awards (including restricted stock units and market stock units), without any estimated excess tax benefits and deficiencies in the calculation of assumed proceeds under the Treasury Stock Method, as such amounts are now recognized in the income statement.

The following table details the calculation of basic and diluted earnings per share for the three and nine months ended December 24, 2016 and December 26, 2015 (in thousands, except per share amounts):



	Three Months Ended				Nine Months Ended
	December 24,		December 26,		December 24,		December 26,
	2016		2015		2016		2015
Numerator:
Net income	$	122,041	$	41,384	$	226,151	$	109,618
Denominator:
Weighted average shares outstanding		63,837		63,328		63,025		63,316
Effect of dilutive securities		2,911		2,433		3,353		2,868
Weighted average diluted shares		66,748		65,761		66,378		66,184
Basic earnings per share	$	1.91	$	0.65	$	3.59	$	1.73
Diluted earnings per share	$	1.83	$	0.63	$	3.41	$	1.66

The weighted outstanding shares excluded from our diluted calculation for the three and nine months ended December 24, 2016 were 157 thousand and 208 thousand, respectively, as the shares were anti-dilutive. The weighted outstanding shares excluded from our diluted calculation for the three and nine months ended December 26, 2015 were 563 thousand and 374 thousand, respectively, as the shares were anti-dilutive.