Net Income per Common Share

12 Months Ended

Dec. 29, 2012

Net Income per Common Share

Note 8—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. Diluted net income per common share is calculated using the weighted average number of common shares outstanding adjusted to include the effect, if dilutive, of the exercise of in-the-money stock options, PSUs, Performance-based RSUs and Time-based RSUs.

A reconciliation of the denominators of the basic and diluted net income per common share computations is as follows:

	For the Year Ended
(in thousands)	December 29, 2012		December 31, 2011		January 1, 2011
Weighted average number of shares outstanding - basic		94,553		94,241		85,588
Dilutive effect of stock options		32		33		191
Dilutive effect of PSUs		—		—		161
Dilutive effect of Performance-based RSUs		58		727		96
Dilutive effect of Time-based RSUs		132		—		149
Adjusted weighted average number of shares outstanding - diluted		94,775		95,001		86,185

At December 29, 2012, options to purchase 468,000 (December 31, 2011—284,000; January 1, 2011—704,000) shares of common stock at a weighted average exercise price of C$7.28 (December 31, 2011— C$20.47; January 1, 2011—C$16.67) per share were outstanding, of which 50,000 (December 31, 2011—209,000; January 1, 2011—354,000) were not included in the computation of diluted net income per share because the options’ exercise price was greater than the average market price of the common shares. Shares purchased on the open market and held by independent trusts are categorized as treasury shares under applicable accounting rules. In 2012, we utilized such shares to satisfy the vesting of Time-based RSU’s granted in 2010. We excluded (December 31, 2011—674,397; January 1, 2011—1,051,000) treasury shares held in various trusts in the calculation of basic and diluted earnings per share in 2011 and 2010.