NET INCOME PER SHARE

3 Months Ended

Mar. 25, 2016

Diluted common shares were calculated as follows (in thousands, except per share amounts):



	Thirteen weeks ended
	March 25, 2016		March 27, 2015
Net income	$	6,968	$	5,716

Weighted average number of common shares used in basic net income per common share	41,502		41,031
Dilutive effect of outstanding stock options and non-vested restricted stock	296		331
Weighted average number of common shares used in diluted net income per common share	41,798		41,362
Net income per common share:
Basic	$	0.17	$	0.14
Diluted	$	0.17	$	0.14

Anti-dilutive shares	284		266

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of outstanding stock options, vested and non-vested restricted stock, performance share units, and shares issued under the employee stock purchase plan, except where their inclusion would be anti-dilutive.

Anti-dilutive shares include non-vested restricted stock, performance share units, and outstanding stock options for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented.