Earnings Per Share

6 Months Ended

Jul. 02, 2016

Earnings per Share

We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock awards, restricted stock units, performance shares, performance units, and stock options. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. Due to year-to-date net losses, basic and diluted earnings per share are equivalent for the three and six months ended July 2, 2016, and the six months ended July 4, 2015.

The reconciliation of basic and diluted income per common share for the three months ended July 4, 2015 was as follows (in thousands, except per share data):



	Three Months Ended July 4, 2015
Net income	$	2,870

Basic weighted shares outstanding	8,739
Dilutive effect of share-based awards	47
Diluted weighted average shares outstanding	8,786

Basic earnings per share	$	0.33
Diluted earnings per share	$	0.33