Net Income per Share

3 Months Ended

Apr. 01, 2017

14. Net Income per Share

CRA calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. Net earnings allocable to these participating securities were not significant for the first quarter of fiscal 2017 or fiscal 2016.

The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands):

	April 1, 2017		April 2, 2016
Net income, as reported	$	2,853	$	2,423
Less: net income attributable to participating shares		20		18

Net income available to common shareholders	$	2,833	$	2,405

The following presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):

	April 1, 2017		April 2, 2016
Basic weighted average shares outstanding		8,419		8,871
Stock options and restricted stock units		202		56

Diluted weighted average shares outstanding		8,621		8,927

For the first quarter ended April 1, 2017, the anti-dilutive share based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 8,234 shares. For the first quarter ended April 2, 2016, the anti-dilutive share based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 346,245 shares. These share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period.

On March 21, 2016, CRA's Board of Directors authorized the repurchase of up to $20.0 million of CRA's common stock. Repurchases under these programs are discretionary and CRA may make such purchases under any of these programs in the open market (including under any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions, in each case in accordance with applicable insider trading and other securities laws and regulations. CRA records the retirement of its repurchased shares as a reduction to common stock. During the first quarter ended April 1, 2017 and the first quarter ended April 2, 2016, there were no shares repurchased or retired under these share repurchase programs. As of April 1, 2017, there was approximately $9.0 million available for future repurchases under these programs. See note 17 for subsequent additional repurchase authorization.