Earnings Per Share

9 Months Ended

Oct. 03, 2020

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				Nine Months Ended
	October 3,		September 28,		October 3,		September 28,
	2020		2019		2020		2019
Net income	$	3,162	$	20,181	$	3,583	$	9,550
Shares used in computing basic earnings per share		43,815		43,358		43,737		43,311
Effect of dilutive securities:
Stock-based awards and convertible debt		513		1,276		517		809
Shares used in computing diluted earnings per share		44,328		44,634		44,254		44,120
Earnings per share:
Basic	$	0.07	$	0.47	$	0.08	$	0.22
Diluted	$	0.07	$	0.45	$	0.08	$	0.22

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 months ended October 3, 2020 and September 28, 2019 and the nine months ended October 3, 2020 and September 28, 2019, approximately 0.1 million, 0.6 million, 0.2 million and 0.3 million shares, respectively, 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.