Net Income Per Share

9 Months Ended

Oct. 02, 2016

12. Net Income Per Share

The computation of net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options, assumed vesting of restricted stock units (“RSUs”), assumed vesting of performance stock awards (“PSAs”), and assumed vesting of restricted stock awards (“RSAs”).

A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts):

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
Basic net income per share:
Net income	$	23,885	$	31,986	$	107,301	$	100,775
Weighted average shares outstanding		147,743		153,585		149,202		153,071
Basic net income per share	$	0.16	$	0.21	$	0.72	$	0.66
Diluted net income per share:
Net income	$	23,885	$	31,986	$	107,301	$	100,775
Weighted average shares outstanding		147,743		153,585		149,202		153,071
Dilutive effect of equity-based awards:
Assumed exercise of options to purchase shares		2,200		2,360		2,278		2,739
RSUs		28		7		49		31
RSAs		13		—		9		—
PSAs		40		—		30		—
Weighted average shares and equivalent shares outstanding		150,024		155,952		151,568		155,841
Diluted net income per share	$	0.16	$	0.21	$	0.71	$	0.65

For the thirteen weeks ended October 2, 2016, the computation of diluted net income per share does not include 2.2 million options, 0.1 million RSUs, and 0.1 million PSAs as those awards would have been antidilutive or were unvested performance awards. For the thirteen weeks ended September 27, 2015, the computation of diluted net income per share does not include 2.9 million options, 0.1 million RSUs, and 0.1 million PSAs as those awards would have been antidilutive or were unvested performance awards.

For the thirty-nine weeks ended October 2, 2016, the computation of diluted net income per share does not include 1.3 million options, 0.1 million RSUs, and 0.1 million PSAs as those awards would have been antidilutive or were unvested performance awards. For the thirty-nine weeks ended September 27, 2015, the computation of diluted net income per share does not include 0.8 million options and 0.1 million PSAs as those awards would have been antidilutive or were unvested performance awards,