Net Income Per Share

9 Months Ended

Oct. 01, 2011

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if unvested restricted shares vest and outstanding options to purchase common stock were exercised. Options to purchase approximately 2.2 million and 2.1 million shares of common stock that were outstanding for the quarters ended October 1, 2011 and October 2, 2010, respectively, have been excluded from the calculation of diluted income per share because inclusion of such shares would be anti-dilutive. Options to purchase approximately 2.2 million and 2.1 million shares of common stock that were outstanding for the first 39 weeks ended October 1, 2011 and October 2, 2010, respectively, have been excluded from the calculation of diluted income per share because inclusion of such shares would be anti-dilutive.

The following is a reconciliation of the Company’s basic and diluted net income per share computations (shares in thousands):



	13 Weeks Ended
	October 1, 2011				October 2, 2010
	Shares	Net Income Per Share			Shares	Net Income Per Share
Basic	22,788	$	0.49		22,539	$	0.33
Effect of dilutive stock options	480	(0.01		)	525	(0.01		)
Diluted	23,268	$	0.48		23,064	$	0.32
	39 Weeks Ended
	October 1, 2011				October 2, 2010
	Shares	Net Income Per Share			Shares	Net Income Per Share
Basic	22,713	$	1.92		22,455	$	1.47
Effect of dilutive stock options	543	(0.04		)	526	(0.03		)
Diluted	23,256	$	1.88		22,981	$	1.44