Net Income Per Share

3 Months Ended

Apr. 01, 2022

The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method:


	First Quarter
(in thousands, except per share data)	2022		2021
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share:
Net income	$	93,390	$	53,363
Less dividends:
Common Stock	1,786		1,785
Class B Common Stock	558		558
Total undistributed earnings	$	91,046	$	51,020

Common Stock undistributed earnings – basic	$	71,463	$	38,871
Class B Common Stock undistributed earnings – basic	19,583		12,149
Total undistributed earnings – basic	$	91,046	$	51,020

Common Stock undistributed earnings – diluted	$	71,288	$	38,722
Class B Common Stock undistributed earnings – diluted	19,758		12,298
Total undistributed earnings – diluted	$	91,046	$	51,020

Numerator for basic net income per Common Stock share:
Dividends on Common Stock	$	1,786	$	1,785
Common Stock undistributed earnings – basic	71,463		38,871
Numerator for basic net income per Common Stock share	$	73,249	$	40,656

Numerator for basic net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	558	$	558
Class B Common Stock undistributed earnings – basic	19,583		12,149
Numerator for basic net income per Class B Common Stock share	$	20,141	$	12,707


	First Quarter
(in thousands, except per share data)	2022		2021
Numerator for diluted net income per Common Stock share:
Dividends on Common Stock	$	1,786	$	1,785
Dividends on Class B Common Stock assumed converted to Common Stock	558		558
Common Stock undistributed earnings – diluted	91,046		51,020
Numerator for diluted net income per Common Stock share	$	93,390	$	53,363

Numerator for diluted net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	558	$	558
Class B Common Stock undistributed earnings – diluted	19,758		12,298
Numerator for diluted net income per Class B Common Stock share	$	20,316	$	12,856

Denominator for basic net income per Common Stock and Class B Common Stock share:
Common Stock weighted average shares outstanding – basic	7,357		7,141
Class B Common Stock weighted average shares outstanding – basic	2,016		2,232

Denominator for diluted net income per Common Stock and Class B Common Stock share:
Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock)	9,396		9,409
Class B Common Stock weighted average shares outstanding – diluted	2,039		2,268

Basic net income per share:
Common Stock	$	9.96	$	5.69
Class B Common Stock	$	9.99	$	5.69

Diluted net income per share:
Common Stock	$	9.94	$	5.67
Class B Common Stock	$	9.96	$	5.67

NOTES TO TABLE

(1)For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock.

(2)For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted.

(3)For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Long-Term Performance Equity Plan. For periods presented during which the Company has net loss, the unvested shares granted pursuant to the Long-Term Performance Equity Plan are excluded from the computation of diluted net loss per share, as the effect would have been anti-dilutive. See Note 2 for additional information on the Long-Term Performance Equity Plan.

(4)The Long-Term Performance Equity Plan awards may be settled in cash and/or shares of the Company’s Class B Common Stock. Once an election has been made to settle an award in cash, the dilutive effect of shares relative to such award is prospectively removed from the denominator in the computation of diluted net income per share.

(5)The Company did not have anti-dilutive shares for any periods presented.

(6)1,227,546 shares of the Company’s Class B Common Stock were converted on a one share for one share basis into shares of the Company’s Common Stock, effective as of March 17, 2022. See Note 2 for additional information on the Stockholder Conversion Agreement.