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Net Income Per Share
 12 Months Ended
Jan. 01, 2012
Earnings Per Share [Abstract]  
Net Income Per Share
Net Income (Loss) per Share
Basic net income (loss) per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding adjusted for the dilutive effect of outstanding stock options, if dilutive. The numerator of the diluted net income per share calculation is increased by the allocation of net income and dividends declared to nonvested shares, if the net impact is dilutive.
The Company has determined that certain nonvested share awards (also referred to as restricted stock awards) are participating securities because they have non-forfeitable rights to dividends. Accordingly, basic net income per share is calculated under the two-class method calculation. In determining the number of diluted shares outstanding, the Company is required to disclose the more dilutive earnings per share result between the treasury stock method calculation and the two-class method calculation.
The following table is a reconciliation of the net income (loss) and share amounts used in the calculation of basic net income (loss) per share and diluted net income per share:
 
 
Year ended
 
January 1, 2012
 
January 2, 2011
 
January 3, 2010
Basic net income (loss) per share:
 
 
 
 
 
Net income (loss) from continuing operations
$
(524
)
 
$
1,810

 
$
11,074

Net income from discontinued operations
$
11,742

 
$
10,106

 
$
10,761

Weighted average common shares outstanding
21,677,837

 
21,620,550

 
21,594,366

Basic net income (loss) per share from continuing operations
$
(0.02
)
 
$
0.08

 
$
0.51

Basic net income per share from discontinued operations
$
0.54

 
$
0.47

 
$
0.50

 
 

 
 

 
 

Diluted net income (loss) per share:
 

 
 

 
 

Net income (loss) from continuing operations
$
(524
)
 
$
1,810

 
$
11,074

Net income from discontinued operations
$
11,742

 
$
10,106

 
$
10,761

Shares used in computed basic net income per share
21,677,837

 
21,620,550

 
21,594,366

Dilutive effect of non-vested shares and stock options
—

 
214,867

 
174,317

Shares used in computed diluted net income per share
21,677,837

 
21,835,417

 
21,768,683

Diluted net income (loss) per share from continuing operations
$
(0.02
)
 
$
0.08

 
$
0.51

Diluted net income per share from discontinued operations
$
0.54

 
$
0.46

 
$
0.49

Shares excluded from diluted net income per share computation (1)
1,551,372

 
2,076,725

 
1,600,772

 
(1)
These shares subject to stock options and non-vested shares were not included in the computation of diluted net income (loss) per share because they would have been antidilutive for the years presented.