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Net (Loss) Income per Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Net (Loss) Income per Share
Net (Loss) Income Per Share

We compute basic net (loss) income per share by dividing net (loss) income by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units ("RSUs"), and Employee Stock Purchase Plan ("ESPP") shares. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. When we are in a net loss position, we do not include dilutive securities as their inclusion would reduce the net loss per share.

A reconciliation of basic and diluted net (loss) income per share is presented below:
 
 
Year Ended
(in thousands, except per share data)
 
December 31, 2016
 
January 2, 2016
 
January 3, 2015
Net (loss) income
 
$
(54,099
)
 
$
(159,233
)
 
$
48,580

 
 
 
 
 
 
 
Shares used in basic net (loss) income per share
 
119,994

 
117,387

 
117,708

Dilutive effect of stock options, RSUs and ESPP shares
 
—

 
—

 
2,537

Shares used in diluted net (loss) income per share
 
119,994

 
117,387

 
120,245

 
 
 
 
 
 
 
Basic net (loss) income per share
 
$
(0.45
)
 
$
(1.36
)
 
$
0.41

 
 
 
 
 
 
 
Diluted net (loss) income per share
 
$
(0.45
)
 
$
(1.36
)
 
$
0.40



The computation of diluted net (loss) income per share for fiscal years 2016 and 2015 excludes the effects of stock options, RSUs, and ESPP shares, aggregating approximately 9.0 million shares and 9.2 million shares, respectively, which are antidilutive. The computation of diluted net (loss) income per share for fiscal year 2014 includes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.5 million shares, as they are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.6 million shares, as they are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense, and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options and RSUs that are antidilutive at December 31, 2016 could become dilutive in the future.