Net Income Per Share

6 Months Ended

Jul. 02, 2016

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. Diluted net income per share reflects the potential dilution that could occur if unvested restricted shares and outstanding options to purchase common stock were exercised. Options to purchase approximately 0.6 million shares of common stock that were outstanding for each of the quarters ended July 2, 2016 and July 4, 2015, have been excluded from the calculation of diluted income per share because inclusion of such shares would be anti-dilutive. Options to purchase approximately 0.6 million shares and 0.2 million shares of common stock that were outstanding for the first 26-weeks ended July 2, 2016 and July 4, 2015, 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
	July 2, 2016				July 4, 2015
	Shares	Net Income Per Share			Shares	Net Income Per Share
Basic	24,884	$	0.87		24,617	$	0.85
Effect of dilutive stock options	74	(0.01		)	67	0.00
Diluted	24,958	$	0.86		24,684	$	0.85

	26 Weeks Ended
	July 2, 2016				July 4, 2015
	Shares	Net Income Per Share			Shares	Net Income Per Share
Basic	24,825	$	0.50		24,551	$	0.44
Effect of dilutive stock options	85	0.00			154	(0.01		)
Diluted	24,910	$	0.50		24,705	$	0.43