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				Nine Months Ended
	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
Net income	$	27,761	$	19,949	$	68,446	$	51,944

Shares used in computing basic earnings per share	43,256		42,553		43,177		42,376

Effect of dilutive securities:
Stock options and other stock-based awards	938		821		958		818
Shares used in computing diluted earnings per share	44,194		43,374		44,135		43,194

Earnings per share:
Basic	$	0.64	$	0.47	$	1.59	$	1.23
Diluted	$	0.63	$	0.46	$	1.55	$	1.20

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. For the three and nine months ended September 29, 2018, approximately 0.2 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.