AVERAGE SHARES OUTSTANDING

Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options, nonvested stock awards and units, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods.

The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):



	Quarter		Year-to-date
	July 8, 2018	July 9, 2017	July 8, 2018	July 9, 2017
Weighted-average shares outstanding – basic	28,042	29,474	28,989	30,976
Effect of potentially dilutive securities:
Nonvested stock awards and units	215	175	241	180
Stock options	32	53	47	62
Performance share awards	7	16	7	16
Weighted-average shares outstanding – diluted	28,296	29,718	29,284	31,234
Excluded from diluted weighted-average shares outstanding:
Antidilutive	192	90	139	72
Performance conditions not satisfied at the end of the period	67	79	67	79