Note 2 - Net Income Per Share

12 Months Ended

Dec. 28, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 2 - Net Income Per Share

We compute basic earnings per share based on the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period, if applicable. Potentially dilutive shares of common stock from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs and RSAs, and the assumed issuance of common stock under the stock purchase plan.

Our calculation of potentially dilutive shares includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the number of shares included in the diluted share count as of the end of each period presented is determined by measuring the achievement of the market condition as of the end of the respective reporting periods. For equity awards with a performance condition, the number of shares that qualified for vesting as of the end of each period presented are included in the diluted share count when the condition for their issuance was satisfied by the end of the respective reporting periods. See "Note 10 - Stock-Based Compensation Plans" for further discussion of our equity awards with market or performance conditions.

A summary of basic and diluted Net income per share is presented in the following table:

	Year Ended
	December 28,		December 30,		December 31,
(In thousands, except per share data)	2024		2023		2022
Net income	$	61,131	$	259,061	$	178,882
Shares used in basic Net income per share		137,623		137,694		137,321
Dilutive effect of employee equity incentive plans		699		2,096		3,346
Shares used in diluted Net income per share		138,322		139,790		140,667
Basic Net income per share	$	0.44	$	1.88	$	1.30
Diluted Net income per share	$	0.44	$	1.85	$	1.27

The computation of diluted Net income per share excludes the effects of employee equity incentive plans that are antidilutive, aggregating to approximately 1.0 million, 0.4 million, and 0.5 million, respectively, in fiscal 2024, 2023, and 2022.