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Earnings Per Share
 12 Months Ended
Jan. 01, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
(10) Earnings Per Share

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards.

The following table sets forth the computation of basic and diluted earnings per common share:

 

                         
       

Year Ended
       

    January 1,    
2012

      

    January 2,    
2011

      

    January 3,    
2010
        (In thousands, except per share data)
             

Net income

   $   11,673    $   20,562    $   21,811 
       

 

      

 

      

 
             

Weighted-average shares of common stock outstanding:

                        

Basic

       21,656        21,552        21,434 

Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards

       213        338        223 
       

 

      

 

      

 

Diluted

       21,869        21,890        21,657 
       

 

      

 

      

 
             

Basic earnings per share

   $   0.54    $   0.95   $   1.02
       

 

      

 

      

 
             

Diluted earnings per share

   $   0.53    $   0.94   $   1.01
       

 

      

 

      

 

The computation of diluted earnings per share for fiscal 2011, 2010 and 2009 does not include share option awards in the amounts of 1,043,480, 892,499 and 923,559, respectively, that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares. Additionally, the computation of diluted earnings per share for fiscal 2011, 2010 and 2009 does not include nonvested share awards in the amount of 118,312, 183 and 6,760 shares, respectively, that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards exceeded the average market price of the Company’s common shares.

In the fourth quarter of fiscal 2011, the Company resumed its share repurchase activity under its share repurchase program, repurchasing 109,550 shares of common stock for $1.0 million. The Company did not repurchase shares of common stock during fiscal 2009 and 2010. Since the inception of the Company’s initial share repurchase program in May 2006 through January 1, 2012, the Company has repurchased a total of 1,478,635 shares for $21.8 million, leaving a total of $13.2 million available for share repurchases under the current share repurchase program.