Earnings Per Share

6 Months Ended

Jul. 01, 2023

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				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
	2023		2022		2023		2022
Net income	$	10,956	$	22,135	$	24,923	$	45,042
Shares used in computing basic earnings per share		31,614		35,722		31,786		36,862
Effect of dilutive securities:
Convertible debt and stock-based awards		1,312		882		1,553		1,201
Shares used in computing diluted earnings per share		32,926		36,604		33,339		38,063
Earnings per share:
Basic	$	0.35	$	0.62	$	0.78	$	1.22
Diluted	$	0.33	$	0.60	$	0.75	$	1.18

The Company irrevocably elected to settle the principal amount of its convertible senior notes in cash and intended to settle any excess value in shares in the event of a conversion. In June 2023, the Company paid $535.0 million in cash and issued 0.9 million shares of common stock in connection with the conversions and redemptions of the 2025 convertible senior notes. For the three and six months ended July 1, 2023 and July 2, 2022, approximately 0.9 million, 0.6 million, 1.1 million, and 0.8 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share (related to the not yet converted or redeemed convertible senior notes.) See Note 6, Debt, to the Condensed Consolidated Financial Statements for additional information.