Note 2 - Net Income Per Share

12 Months Ended

Jan. 03, 2026

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 2 - Net Income Per Share

We compute basic earnings per share based on the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period, if applicable. Potentially dilutive shares of common stock from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs and RSAs, and the assumed issuance of common stock under the stock purchase plan.

Our calculation of potentially dilutive shares includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the number of shares included in the diluted share count as of the end of each period presented is determined by measuring the achievement of the market condition as of the end of the respective reporting periods. For equity awards with a performance condition, the number of shares that qualified for vesting as of the end of each period presented are included in the diluted share count when the condition for their issuance was satisfied by the end of the respective reporting periods. See "Note 10 - Stock-Based Compensation Plans" to our consolidated financial statements for further discussion of our equity awards with market conditions or performance conditions.

A summary of basic and diluted Net income per share is presented in the following table:

		*Year Ended*
		*January 3,*				*December 28,*				*December 30,*
(In thousands, except per share data)		*2026*				*2024*				*2023*
Net income		$	3,084			$	61,131			$	259,061

Shares used in basic Net income per share			137,091				137,623				137,694
Dilutive effect of employee equity incentive awards			1,147				699				2,096
Shares used in diluted Net income per share			138,238				138,322				139,790

Basic Net income per share		$	0.02			$	0.44			$	1.88
Diluted Net income per share		$	0.02			$	0.44			$	1.85

The computation of diluted Net income per share excludes the effects of employee equity incentive plans that are antidilutive, aggregating to approximately 0.7 million, 1.0 million, and 0.4 million, respectively, in fiscal 2025, 2024, and 2023.