3. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Year Ended

	December 30, 2017		December 31, 2016		January 2, 2016
Net income	$	47,092	$	61,494	$	29,586

Shares used in computing basic earnings per share		42,446		41,713		42,309
Effect of dilutive securities:
Stock options and other stock-based awards		886		663		636

Shares used in computing diluted earnings per share		43,332		42,376		42,945



Earnings per share:
Basic	$	1.11	$	1.47	$	0.70
Diluted	$	1.09	$	1.45	$	0.69

For fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, approximately 0.0 million, 0.1 million and 0.1 million shares, respectively, consisting of restricted stock units (RSUs), market stock units (MSUs) and stock options, were not included in the diluted earnings per share calculation since the shares were anti-dilutive.

The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess will be included in the denominator for the computation of diluted earnings per share using the treasury stock method. As of December 30, 2017, no such shares were included in the denominator for the calculation of diluted earnings per share. See Note 10, Debt, to the Consolidated Financial Statements for additional information.