Net Income Per Common Share

6 Months Ended

Jul. 01, 2016

Net Income Per Common Share [Abstract]

2. 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. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Dilutive net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

The following table reconciles basic and dilutive weighted average common shares:



	Quarter Ended		Six Months Ended
	July 1,	July 3,	July 1,		July 3,
	2016	2015	2016		2015

Basic weighted average common shares outstanding	29,285,379	28,717,622		29,587,570		28,634,644

Effect of dilutive securities:
Unvested restricted stock units and common stock subject to
vesting requirements issued to employees and non-employees	1,313,015	1,490,490		1,254,772		1,169,221
Common stock issuable upon the exercise of stock options and SARs	2,283,582	680,378		2,275,239		599,039
Dilutive weighted average common shares outstanding	32,881,976	30,888,490		33,117,581		30,402,904

Approximately 0.9 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for both the quarter and six months ended July 1, 2016 as compared to 0.5 million and 0.6 million for the quarter and six months ended July 3, 2015, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.