v3.7.0.1
Net Income per Share Attributable to Common Stockholders
3 Months Ended
Apr. 01, 2017
Earnings Per Share [Abstract]  
Net Income per Share Attributable to Common Stockholders
et Income per Share Attributable to Common Stockholders
Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. For the three months ended April 1, 2017, we applied the two-class method to calculate basic and diluted net income per share of common stock, as our Series A Redeemable Convertible Preferred Stock (Series A Preferred Stock) is a participating security. The two-class method is an earnings allocated formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. We compute diluted net income per common share using income from continuing operations as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, unvested restricted stock outstanding during the period and potential issuance of stock upon the conversion of the our Series A Preferred Stock, including accrued dividends, outstanding during the period, except where the effect of such securities would be antidilutive.
The calculations of basic and diluted net income per share and basic and dilutive weighted-average shares outstanding for the three months ended April 1, 2017 and March 26, 2016 were as follows (in thousands, except per share data):
 
Three Months Ended
 
April 1, 2017
 
March 26, 2016
Numerator:
 
 
 
Net income attributable to common stockholders
$
192

 
$
6,755

 
 
 
 
Denominator:
 
 
 
Weighted-average shares outstanding - basic
29,149

 
32,229

 
 
 
 
Dilutive impact from:
 
 
 
Options outstanding
1,705

 
861

Restricted stock units
428

 
498

Weighted-average shares outstanding - dilutive
31,282

 
33,588

 
 
 
 
Net income per share attributable to common stockholders (Basic):
 
 
 
Income (loss) from continuing operations attributable to common stockholders
$
0.01

 
$
(0.03
)
Income from discontinued operations attributable to common stockholders

 
0.24

Net income per share attributable to common stockholders
$
0.01

 
$
0.21

 
 
 
 
Net income per share attributable to common stockholders (Diluted):
 
 
 
Income (loss) from continuing operations attributable to common stockholders
$
0.01

 
$
(0.03
)
Income from discontinued operations attributable to common stockholders

 
0.23

Net income per share attributable to common stockholders
$
0.01

 
$
0.20


The following equity shares were excluded from the calculation of diluted net income per share from continuing operations and discontinued operations because their effect would have been anti-dilutive for the periods presented (in thousands):
 
Three Months Ended
 
April 1,
2017
 
March 26,
2016
Stock options
2,962

 
1,794

Restricted stock units
1,391

 
1,733

Series A Redeemable Convertible Preferred Stock (as converted to common stock)
4,596

 

The Series A Preferred Stock is considered anti-dilutive due to the fact that the two-class method was more dilutive when calculating dilutive net income per share attributable to common stockholders.