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				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Net income	$	14,280	$	16,569	$	40,685	$	31,995

Shares used in computing basic earnings per share	43,312		42,478		43,138		42,287

Effect of dilutive securities:
Stock-based awards	982		700		968		817
Shares used in computing diluted earnings per share	44,294		43,178		44,106		43,104

Earnings per share:
Basic	$	0.33	$	0.39	$	0.94	$	0.76
Diluted	$	0.32	$	0.38	$	0.92	$	0.74

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 is included in the denominator for the computation of diluted earnings per share using the treasury stock method. As of June 30, 2018, approximately 0.1 million shares were included in the denominator for the calculation of diluted earnings per share. See Note 7, Debt, to the Condensed Consolidated Financial Statements for additional information.