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:



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Income available to common shareholders:
Net income	$	21,714	$	14,223	$	15,087	$	10,336

Weighted-average shares:
Basic:
Outstanding	22,926		24,797		24,077		24,582
Partially-paid share subscriptions	195		201		362		402
Basic weighted-average shares	23,121		24,998		24,439		24,984

Diluted:
Basic from above	23,121		24,998		24,439		24,984
Incremental shares from assumed:
Exercise of stock subscription purchase rights	140		141		143		143
Exercise of stock options and awards	1,046		846		979		871
Diluted weighted-average shares	24,307		25,985		25,561		25,998

Net income per share:
Basic	$	.94	$	.57	$	.62	$	.41

Diluted	$	.89	$	.55	$	.59	$	.40


K.	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 June 30, 2018 follows:



	Common Shares		Redeemable
	Net of Treasury Shares		Shares		Total
Shares outstanding at January 1, 2018	17,753,832		6,467,027		24,220,859
Shares purchased	(828,495	)	(533,447	)	(1,361,942	)
Shares sold	369,171		235,195		604,366
Stock subscription offering -- cash purchases	51,296		—		51,296
Options and awards exercised	108,850		—		108,850
Shares outstanding at June 30, 2018	17,454,654		6,168,775		23,623,429

On June 30, 2018, we had 23,623,429 common and redeemable shares outstanding, employee options exercisable to purchase 965,780 common shares, partially-paid subscriptions for 723,914 common shares and purchase rights outstanding for 289,391 common shares.

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.