Net Income Per Share

9 Months Ended

Sep. 29, 2015

7. Net Income Per Share

At September 29, 2015 and September 30, 2014, 1.9 million and 1.8 million shares, respectively, of restricted stock issued to employees were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal quarters ended on those dates. Diluted net income per share includes the dilutive effect of outstanding equity awards, calculated using the treasury stock method. Assumed proceeds from the in-the-money options include the windfall tax benefits, net of shortfalls, calculated under the “as-if” method as prescribed by FASB Accounting Standards Codification (“ASC”) 718, “Compensation — Stock Option Compensation.”

	Thirteen Weeks Ended September 29, 2015		Thirteen Weeks Ended September 30, 2014		Thirty-Nine Weeks Ended September 29, 2015		Thirty-Nine Weeks Ended September 30, 2014
	(In thousands, except per share data)
Net income	$	26,176	$	24,223	$	89,323	$	76,790


Basic weighted average shares outstanding	48,848		48,981		48,841		49,690
Dilutive effect of equity awards	1,789		1,982		1,819		2,032


Diluted weighted average shares outstanding	50,637		50,963		50,660		51,722


Basic net income per share	$	0.54	$	0.49	$	1.83	$	1.55


Diluted net income per share	$	0.52	$	0.48	$	1.76	$	1.48

Shares of common stock equivalents of 0.7 million and 1.3 million for the thirteen and thirty-nine weeks ended September 29, 2015, respectively, and 0.4 million and 0.9 million for the thirteen and thirty-nine weeks ended September 30, 2014, respectively, were excluded from the diluted calculation due to their anti-dilutive effect.

Certain of our restricted stock awards are considered participating securities as these awards include non-forfeitable rights to dividends with respect to unvested shares. As such, they must be included in the computation of earnings per share pursuant to the two-class method. Under the two-class method, a portion of net income is allocated to participating securities and, therefore, is excluded from the calculation of earnings per share allocated to common shares. The calculation of basic and diluted earnings per share pursuant to the two-class method results in an immaterial difference from the amounts displayed in the consolidated statements of income.