(12)	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
	December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands, except per share data)

Net income	$	1,104	$	16,886	$	15,297
Weighted-average shares of common stock outstanding:
Basic		21,439		21,607		21,741
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		146		209		186
Diluted		21,585		21,816		21,927
Basic earnings per share	$	0.05	$	0.78	$	0.70
Diluted earnings per share	$	0.05	$	0.77	$	0.70
Antidilutive share option awards excluded from diluted calculation		83		200		481
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		145		—		2

The computation of diluted earnings per share for fiscal 2017, 2016 and 2015 does not include share option awards 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 2017 and 2015 does not include nonvested share awards and nonvested share unit awards 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 fiscal 2016.