Net Income Per Common Share

9 Months Ended

Sep. 25, 2020

2. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period. For the period in which the Company has reported a net loss, diluted net loss per common share is the same as basic net loss per share attributable to common shareholders, because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

2. Net Income per Common Share (continued)

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended				Nine Months Ended
	September 25,		September 27,		September 25,		September 27,
	2020		2019		2020		2019
Basic weighted average common shares outstanding		30,053,457		29,876,468		29,985,879		29,794,091
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		204,747		350,842		142,223		270,776
Common stock issuable upon the exercise of stock options and SARs		2,145,238		2,343,432		2,206,450		2,348,248
Dilutive weighted average common shares outstanding		32,403,442		32,570,742		32,334,552		32,413,115

Approximately 9 thousand shares and 14 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and nine months ended September 25, 2020, respectively, as compared to 26 thousand shares and 13 thousand shares for the quarter and nine months ended September 27, 2019, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share.