Earnings per Common Share

12 Months Ended

Dec. 30, 2017

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 using the treasury stock method, 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 and units, performance shares, and stock options.

The following table shows the computation of basic and diluted earnings per share:



	Fiscal Year Ended
	December 30, 2017		December 31, 2016		January 2, 2016 ⁽¹⁾
	(In thousands, except per share data)
Net income (loss)	$	62,994	$	16,085	$	(11,576	)

Basic weighted average shares outstanding	9,045		8,913		8,750
Dilutive effect of share-based awards	201		156		—
Diluted weighted average shares outstanding	9,246		9,069		8,750

Basic earnings (loss) per share	$	6.96	$	1.80	$	(1.32	)
Diluted earnings (loss) per share	$	6.81	$	1.77	$	(1.32	)

⁽¹⁾Basic and diluted earnings per share are equivalent for the fiscal 2015, due to net losses for the period, and all outstanding share-based awards would be antidilutive.

For fiscal years 2017, 2016, and 2015, we excluded 80,000, 289,333, and 512,720 unvested (or unexercised, in the case of options) share-based awards, respectively, from the diluted earnings per share calculation because they were either anti-dilutive or “out of the money”. Outstanding share based awards not included in diluted earnings per share consisted of the following securities:



	Fiscal Year Ended
	December 30, 2017	December 31, 2016	January 2, 2016
Unvested restricted stock awards	—	78,333	170,334
Performance shares	—	67,000	126,306
Restricted stock units	5,000	69,000	140,180
Unexercised stock options outstanding	75,000	75,000	75,900
Total excluded from diluted earnings per share	80,000	289,333	512,720