Earnings Per Share

12 Months Ended

Dec. 28, 2019

Earnings Per Share

Earnings Per Share

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 28,		December 29,		December 30,
	2019		2018		2017
Net income	$	19,265	$	83,591	$	47,092
Shares used in computing basic earnings per share		43,346		43,159		42,446
Effect of dilutive securities:
Stock-based awards and convertible debt		944		885		886
Shares used in computing diluted earnings per share		44,290		44,044		43,332
Earnings per share:
Basic	$	0.44	$	1.94	$	1.11
Diluted	$	0.43	$	1.90	$	1.09

3. Earnings Per Share (Continued)

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 fiscal 2019 and 2018, approximately 0.4 million shares and 0.1 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. For fiscal 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.