Income Per Common Share

Basic income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted income per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of exercise of stock options as well as assumed lapse of restrictions on restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares for diluted income per common share purposes and the dilutive impact, if any, is not included in the weighted-average shares until the performance conditions are met.

The two-class method was used to calculate basic and diluted income per common share for the twenty-six weeks ended August 2, 2014 since certain of the Company's restricted stock were participating securities. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under the two-class method, basic income per common share is computed by dividing net income attributable to common shares after allocation of income to participating securities by the weighted-average number of common shares outstanding during the year. Diluted income per common share is computed using the more dilutive of the two-class method or the if-converted method. In periods of net loss, no effect is given to participating securities since they do not contractually participate in the losses of the Company. The two-class method is the more dilutive method for the twenty-six weeks ended August 2, 2014. For the thirteen and twenty-six weeks ended August 1, 2015 and thirteen weeks ended August 2, 2014, the Company did not have any outstanding participating securities.

The following table reconciles net income and the weighted average common shares outstanding used in the computations of basic and diluted income per common share (in thousands, except for share and per share data):



	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	August 1, 2015		August 2, 2014		August 1, 2015		August 2, 2014
Numerator:
Net income	$	7,061	$	8,320	$	11,339	$	11,400
Net income attributable to participating securities	—		—		—		(38		)
Net income attributable to common shareholders	$	7,061	$	8,320	$	11,339	$	11,362
Denominator:
Weighted average common shares outstanding - basic	54,501,257		54,280,336		54,474,946		54,072,660
Dilutive impact of options, restricted stock units and employee stock purchase plan	284,835		389,264		276,674		408,880
Weighted average common shares outstanding - diluted	54,786,092		54,669,600		54,751,620		54,481,540
Per common share:
Basic income per common share	$	0.13	$	0.15	$	0.21	$	0.21
Diluted income per common share	$	0.13	$	0.15	$	0.21	$	0.21

The effects of the assumed exercise of stock options for 718,633 and 703,829 shares of common stock for the thirteen and twenty-six weeks ended August 1, 2015, respectively, were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive.

The effects of the assumed exercise of stock options for 555,081 and 581,127 shares of common stock for the thirteen and twenty-six weeks ended August 2, 2014, respectively, were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive.

The aforementioned excluded shares do not reflect the impact of any incremental repurchases under the treasury stock method.