Earnings Per Share

3 Months Ended

Apr. 03, 2021

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 3,		April 4,
	2021		2020
Net income	$	13,509	$	2,244
Shares used in computing basic earnings per share		44,160		43,642
Effect of dilutive securities:
Stock-based awards and convertible debt		1,672		746
Shares used in computing diluted earnings per share		45,832		44,388
Earnings per share:
Basic	$	0.31	$	0.05
Diluted	$	0.29	$	0.05

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 April 3, 2021 and April 4, 2020, approximately 1.1 million and 0.3 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. See Note 6, Debt, to the Condensed Consolidated Financial Statements for additional information.