Net Income Per Share

6 Months Ended

Jul. 04, 2023

Net Income Per Share

Net Income Per Share

10.  Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. As of July 4, 2023 and June 28, 2022, 2.8 million and 2.4 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates.

Diluted net income per share is computed by dividing net income by the weighted-average number of common stock equivalents outstanding for the period. Common stock equivalents for the Notes are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.

	Thirteen		Thirteen		Twenty-Six		Twenty-Six
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	July 4, 2023		June 28, 2022		July 4, 2023		June 28, 2022
	(In thousands, except per share data)
Net income	$	42,675	$	25,656	$	70,725	$	48,819
Basic weighted-average shares outstanding		48,492		50,387		48,593		50,360
Dilutive effect of equity awards (1)		593		542		703		606
Diluted weighted-average shares outstanding		49,085		50,929		49,296		50,966
Basic net income per share	$	0.88	$	0.51	$	1.46	$	0.97
Diluted net income per share	$	0.87	$	0.50	$	1.43	$	0.96

(1) Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.6 million and 3.1 million for July 4, 2023 and June 28, 2022, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.