Earnings Per Share

9 Months Ended

Oct. 02, 2011

6. Earnings Per Share:

Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the net incremental shares that would be issued using the treasury stock method assuming dilutive outstanding stock options were exercised, except when anti-dilutive. The computation of diluted earnings per share excludes stock options with an exercise price in excess of the average market price as they are anti-dilutive. In calculating diluted earnings per share, the dilutive effect of stock options is computed using the average market price for the respective period.

The following table shows a reconciliation of weighted average shares (in thousands):

	Three Months Ended				Nine Months Ended
	10/2/2011		10/3/2010		10/2/2011		10/3/2010
Weighted average shares outstanding		4,350		4,306		4,344		4,302
Dilutive effect of stock options outstanding, using the treasury stock method		229		190		271		148
Diluted weighted average shares outstanding		4,579		4,496		4,615		4,450

During the three and nine months ended October 3, 2010, stock options to purchase 36,125 and 53,415, respectively, common shares were not included in the computation of "Diluted Earnings per Share" because their inclusion would be anti-dilutive.