Net Income Per Share

6 Months Ended

Jul. 02, 2022

CRA calculates basic earnings per share using the two-class method. CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method. The two-class method was more dilutive for the fiscal quarters ended July 2, 2022 and July 3, 2021.

Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all the net earnings for the period had been distributed. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Net earnings allocable to these participating securities were not material for the fiscal quarters ended July 2, 2022 and July 3, 2021.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Numerator:
Net income — basic	$	11,643	$	11,566	$	23,069	$	22,067
Less: net income attributable to participating shares	48		51		95		97
Net income — diluted	$	11,595	$	11,515	$	22,974	$	21,970
Denominator:
Weighted average shares outstanding — basic	7,263		7,320		7,311		7,473
Effect of dilutive stock options and restricted stock units	117		219		131		212
Weighted average shares outstanding — diluted	7,380		7,539		7,442		7,685
Net income per share:
Basic	$	1.60	$	1.57	$	3.15	$	2.94
Diluted	$	1.57	$	1.53	$	3.09	$	2.86

Anti-dilutive share-based awards are excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding. There were no anti-dilutive share-based awards for the fiscal quarters and fiscal year-to-date periods ended July 2, 2022 and July 3, 2021.