Per Share Amounts and Common and Redeemable Shares Outstanding

We calculate our basic earnings per share by dividing net income or net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated in a similar manner, but include the effect of dilutive securities. To the extent these securities are antidilutive, they are excluded from the calculation of earnings per share. The per share amounts were computed as follows (adjusted for the two-for-one stock split of our common shares effective June 1, 2017):



	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Income available to common shareholders:
Net income	$	14,223	$	13,309	$	10,336	$	9,121

Weighted-average shares:
Basic:
Outstanding	24,797		25,528		24,582		25,534
Partially-paid share subscriptions	201		212		402		424
Basic weighted-average shares	24,998		25,740		24,984		25,958

Diluted:
Basic from above	24,998		25,740		24,984		25,958
Incremental shares from assumed:
Exercise of stock subscription purchase rights	141		136		143		136
Exercise of stock options and awards	846		822		871		874
Diluted weighted-average shares	25,985		26,698		25,998		26,968

Net income per share:
Basic	$	.57	$	.52	$	.41	$	.35

Diluted	$	.55	$	.50	$	.40	$	.34


L.	Per Share Amounts and Common and Redeemable Shares Outstanding (continued)

Common and Redeemable Shares Outstanding--A summary of the activity of the common and redeemable shares outstanding for the six months ended July 1, 2017 follows:



	Common Shares		Redeemable
	Net of Treasury Shares		Shares		Total
	As Restated		As Restated		As Restated
Shares outstanding at January 1, 2017	17,866,236		7,056,904		24,923,140
Shares purchased	(351,033	)	(591,002	)	(942,035	)
Shares sold	184,651		264,647		449,298
Stock subscription offering -- cash purchases	41,781		—		41,781
Options and awards exercised	105,819		—		105,819
Shares outstanding at July 1, 2017	17,847,454		6,730,549		24,578,003

On July 1, 2017, we had 24,578,003 common and redeemable shares outstanding, employee options exercisable to purchase 869,302 common shares, partially-paid subscriptions for 804,048 common shares and purchase rights outstanding for 319,956 common shares.

Common Stock Split--On May 10, 2017, our Board of Directors declared a two-for-one stock split of our common shares, paid as a stock dividend to shareholders of record as of June 1, 2017. The par value of each common share remains at $1.00.

Stock Subscription Offering--Beginning May 2012, the Company offered to eligible employees and nonemployee directors the right to subscribe to common shares of the Company at $9.85 per share in accordance with the provisions of The Davey Tree Expert Company 2004 Omnibus Stock Plan and the rules of the Compensation Committee of the Company's Board of Directors (collectively, the "plan"). The offering period ended on August 1, 2012 and resulted in the subscription of 1,275,428 common shares for $12,563 at $9.85 per share.

Under the plan, a participant in the offering purchasing common shares for an aggregate purchase price of less than $5 had to pay with cash. All participants (excluding Company directors and officers) purchasing $5 or more of the common shares had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a seven-year promissory note for the balance due with interest at 2%. Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest.

Common shares purchased under the plan have been pledged as security for the payment of the promissory note and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares.

All participants in the offering purchasing in excess of $5 of common shares were granted a "right" to purchase one additional common share at a price of $9.85 per share for every three common shares purchased under the plan. As a result of the stock subscription, employees were granted rights to purchase 423,600 common shares. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. Employees may not exercise a right should they cease to be employed by the Company.