Earnings (Loss) Per Share

3 Months Ended

Apr. 01, 2023

Earnings (Loss) Per Share

Earnings (Loss) 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 1,		April 2,
	2023		2022
Net income	$	13,967	$	22,907
Shares used in computing basic earnings per share		31,959		38,003
Effect of dilutive securities:
Convertible debt and stock-based awards		1,794		1,520
Shares used in computing diluted earnings per share		33,753		39,523
Earnings per share:
Basic	$	0.44	$	0.60
Diluted	$	0.41	$	0.58

The Company has irrevocably elected to settle the principal amount of its convertible senior notes in cash and intends to settle any excess value in shares in the event of a conversion. For the three months ended April 1, 2023 and April 2, 2022, approximately 1.2 million and 1.0 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.