Net Income Per Share

12 Months Ended

Jan. 01, 2023

Basic net income per share was calculated by dividing net income by the weighted average number of outstanding common shares for the period. Diluted net income per share was calculated consistent with basic net income per share and includes the effect of dilutive unissued common shares related to the Company’s stock-based employee compensation program. The effect of stock options and restricted stock on net income per share-diluted is determined through the application of the treasury stock method, whereby net proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company’s common stock at the average market price during the period.

The following table summarizes the components of basic and diluted net income per share (in millions except per share amounts):


	Fiscal Years Ended
	January 1, 2023		January 2, 2022		December 27, 2020
Net income	$	292.4	$	294.4	$	194.8

Weighted average common shares outstanding:
Basic	133.9		134.7		134.1
Effect of dilutive stock options and restricted stock awards	0.2		0.6		1.0
Diluted	134.1		135.3		135.1

Net income per share:
Basic	$	2.18	$	2.18	$	1.45
Diluted	$	2.18	$	2.18	$	1.44

The weighted number of shares outstanding used in the calculation of diluted earnings per share does not include the effect of the following anti-dilutive securities and awards subject to performance conditions which have not been fully satisfied at the

end of respective reporting periods:


	Fiscal Years Ended
	January 1, 2023	January 2, 2022	December 27, 2020
Anti-dilutive awards	0.3	—	0.2
Awards subject to performance conditions not fully satisfied	0.3	0.2	0.1
	0.6	0.2	0.3

Share Repurchase Program

On August 2, 2021, the Company’s Board of Directors authorized a share repurchase program under which the Company can repurchase up to $400.0 million (exclusive of fees and commissions) of shares of its common stock (the “Repurchase Program”). The Repurchase Program expires on August 3, 2026. The shares under the Repurchase Program may be repurchased through open market, privately negotiated transactions, accelerated share repurchase transactions or other means, including

under plans complying with the provisions of Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and amount of common stock to be repurchased under this Repurchase Program will be subject to the discretion of the Company based upon market conditions and other opportunities the Company may have to deploy capital. The Repurchase Program does not obligate the Company to acquire any specific number of shares of its common stock, and the Repurchase Program may be suspended or discontinued at any time.

Pursuant to the Repurchase Program, the Company repurchased 751,285 shares of its common stock for an aggregate gross purchase price of approximately $27.2 million during fiscal 2022 and 677,854 shares for a gross purchase price of approximately $34.0 during fiscal 2021. As of January 1, 2023, approximately $338.8 million remained available under the Repurchase Program. Pursuant to the Merger Agreement, the Company is restricted from repurchasing shares of its common stock without RBA’s prior consent.