Earnings Per Share

3 Months Ended

Apr. 01, 2017

Earnings Per Share

Earnings Per Share

2. Earnings Per Share

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

	Three Months Ended
	April 1, 2017		April 2, 2016
Net income	$	15,426	$	5,808
Shares used in computing basic earnings per share	42,096		41,629
Effect of dilutive securities:
Stock options and other stock-based awards	934		570
Shares used in computing diluted earnings per share	43,030		42,199
Earnings per share:
Basic	$	0.37	$	0.14
Diluted	$	0.36	$	0.14

For the three months ended April 1, 2017 and April 2, 2016, approximately 0.3 million and 0.8 million shares, respectively, consisting of restricted stock awards (RSUs), market stock awards (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 April 1, 2017, no such shares were included in the denominator for the calculation of diluted earnings per share.