Earnings Per Share

6 Months Ended

Jul. 02, 2021

EARNINGS PER SHARE

The diluted net loss per share was the same as basic net loss per share for the three and six months ended July 2, 2021 and June 26, 2020, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for all periods presented. The following table sets forth the potential weighted common shares outstanding that were excluded from the diluted net loss per share computation:


	Three Months ended		Six Months Ended
(in thousands)	July 2, 2021	June 26, 2020	July 2, 2021	June 26, 2020
Convertible debt	1,645	—	1,720	584
Stock options	839	1,558	1,015	1,677
Restricted stock units	2,961	2,963	2,895	2,931
Stock purchase rights under the ESPP	404	581	372	512
Total	5,849	5,102	6,002	5,704

The Company applies the treasury stock method to determine the potential dilutive effect of its convertible debt on net earnings per share as a result of the Company's intent and stated policy to settle the principal amount of its convertible debt in cash. Under the treasury stock method, the Company’s convertible debt is excluded from the calculation of diluted earnings per share for the periods when its conversion price exceeds the average market price for the Company's common stock. Under the if-converted method, the Company’s convertible debt has potential dilutive effect of 19.9 million shares.