Earnings Per Share

3 Months Ended

Dec. 27, 2019

9. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating securities as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common stockholders.

Basic earnings per common share excludes dilution and is calculated by dividing the net earnings allocable to common stock by the weighted-average number of common stock outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common stock by the weighted-average number of shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:



	Three months ended
(in thousands, except per share data)	December 27, 2019		December 28, 2018
Numerator:
Net income	$	34,790	$	26,949
Less: Undistributed earnings allocated to participating securities	857		653
Net income available to common shareholders	$	33,933	$	26,296

Denominator:
Basic weighted average common shares outstanding	47,126		46,995
Effect of dilutive securities: Non-participating employee stock options ⁽¹⁾	873		1,288
Diluted weighted average common shares outstanding	47,999		48,283
Basic earnings per share	$	0.72	$	0.56
Diluted earnings per share	$	0.71	$	0.54


(1) Stock options to purchase approximately 0.1 million and 0.6 million shares of common stock were outstanding during the three months ended December 27, 2019 and December 28, 2018, respectively, but were not included in the calculation of diluted earnings per share as the impact of these options would have been anti-dilutive.