Earnings Per Share

9 Months Ended

Oct. 02, 2016

(8)	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 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:

	13 Weeks Ended				39 Weeks Ended
	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
	(In thousands, except per share data)
Net income	$	8,187	$	6,130	$	9,192	$	11,022
Weighted-average shares of common stock outstanding:
Basic		21,593		21,730		21,607		21,791
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		139		120		183		186
Diluted		21,732		21,850		21,790		21,977
Basic earnings per share	$	0.38	$	0.28	$	0.43	$	0.51
Diluted earnings per share	$	0.38	$	0.28	$	0.42	$	0.50

The computation of diluted earnings per share for the 13 weeks ended October 2, 2016, the 39 weeks ended October 2, 2016, the 13 weeks ended September 27, 2015 and the 39 weeks ended September 27, 2015 excludes share option awards in the amounts of 153,987, 239,280, 496,716 and 491,227, 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 the 13 weeks ended October 2, 2016 and the 13 weeks ended September 27, 2015 excludes nonvested share awards and nonvested share unit awards in the amounts of 2,052 and 9,000 shares, respectively, that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares. No nonvested share awards or nonvested share unit awards were antidilutive for the 39 weeks ended October 2, 2016 and September 27, 2015.