Net Income Per Common Share

9 Months Ended

Sep. 30, 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		Nine Months Ended
	September 30,	October 2,	September 30,		October 2,
	2016	2015	2016		2015

Basic weighted average common shares outstanding	28,579,237	28,755,225		29,251,459		28,674,838

Effect of dilutive securities:
Unvested restricted stock units and common stock subject to
vesting requirements issued to employees and non-employees	1,472,927	1,919,882		1,327,491		1,419,441
Common stock issuable upon the exercise of stock options and SARs	2,323,333	813,283		2,291,271		670,454
Dilutive weighted average common shares outstanding	32,375,498	31,488,390		32,870,220		30,764,732

Approximately 0.8 million and 0.9 million shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and nine months ended September 30, 2016, respectively, as compared to 0.5 million for both the quarter and nine months ended October 2, 2015, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.