Net Income Per Share

3 Months Ended

Mar. 28, 2025

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)	2025		2024
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share:
Net income	$	103,611	$	165,741
Less dividends:
Common Stock	19,282		138,088
Class B Common Stock	2,512		16,578
Total undistributed earnings	$	81,817	$	11,075

Common Stock undistributed earnings – basic	$	72,385	$	9,888
Class B Common Stock undistributed earnings – basic	9,432		1,187
Total undistributed earnings – basic	$	81,817	$	11,075

Common Stock undistributed earnings – diluted	$	72,319	$	9,874
Class B Common Stock undistributed earnings – diluted	9,498		1,201
Total undistributed earnings – diluted	$	81,817	$	11,075

Numerator for basic net income per Common Stock share:
Dividends on Common Stock	$	19,282	$	138,088
Common Stock undistributed earnings – basic	72,385		9,888
Numerator for basic net income per Common Stock share	$	91,667	$	147,976

Numerator for basic net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	2,512	$	16,578
Class B Common Stock undistributed earnings – basic	9,432		1,187
Numerator for basic net income per Class B Common Stock share	$	11,944	$	17,765

Numerator for diluted net income per Common Stock share:
Dividends on Common Stock	$	19,282	$	138,088
Dividends on Class B Common Stock assumed converted to Common Stock	2,512		16,578
Common Stock undistributed earnings – diluted	81,817		11,075
Numerator for diluted net income per Common Stock share	$	103,611	$	165,741

Numerator for diluted net income per Class B Common Stock share:
Dividends on Class B Common Stock	$	2,512	$	16,578
Class B Common Stock undistributed earnings – diluted	9,498		1,201
Numerator for diluted net income per Class B Common Stock share	$	12,010	$	17,779

Denominator for basic net income per Common Stock and Class B Common Stock share:
Common Stock weighted average shares outstanding – basic	7,713		8,369
Class B Common Stock weighted average shares outstanding – basic	1,005		1,005

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)	8,726		9,387
Class B Common Stock weighted average shares outstanding – diluted	1,013		1,018


	First Quarter
(in thousands, except per share data)	2025		2024
Basic net income per share:
Common Stock	$	11.88	$	17.68
Class B Common Stock	$	11.88	$	17.68

Diluted net income per share:
Common Stock	$	11.87	$	17.66
Class B Common Stock	$	11.86	$	17.46

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 unvested performance shares relative to the Long-Term Performance Equity Plan. For periods presented during which the Company has net loss, the unvested performance 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 Class B Common Stock. Once an election has been made to settle an award in cash, the dilutive effect of unvested performance 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 unvested performance shares for any periods presented.

(6)On August 20, 2024, the Company announced that its Board of Directors had approved a share repurchase program under which the Company is authorized to repurchase up to $1.00 billion of the Company’s Common Stock. The share repurchase authorization is discretionary and has no expiration date. There were no shares of Common Stock repurchased under the share repurchase program during the first quarter of 2025. As of March 28, 2025, the total remaining share repurchase authorization was $948.4 million.

(7)On March 4, 2025, the Company announced that its Board of Directors had approved a 10-for-1 forward stock split of Common Stock and Class B Common Stock to be effected through an amendment to the Company’s Restated Certificate of Incorporation (the “Amendment”). The Amendment would also effect a proportionate increase in the number of authorized shares of Common Stock and Class B Common Stock. The Amendment is subject to stockholder approval at the Company’s 2025 Annual Meeting of Stockholders, which is scheduled to take place on May 13, 2025. Subject to stockholder approval of the Amendment, each stockholder of record as of the close of business on May 16, 2025 will have nine additional shares for each share of Common Stock or Class B Common Stock held as of such date reflected in the stockholder’s account on or about May 23, 2025. Trading is expected to begin on a split-adjusted basis on or about May 27, 2025. The Company calculated the basic and diluted net income per share on an unaudited pro forma basis giving effect to the stock split as if it had been effective for all periods presented. For the first quarter of 2025, both the basic net income per share and the diluted net income per share for both Common Stock and Class B Common Stock were $1.19 per share on a pro forma basis (as described above). For the first quarter of 2024, the basic net income per share for both Common Stock and Class B Common Stock were $1.77 per share and the diluted net income per share for Common Stock and Class B Common Stock were $1.77 per share and $1.75 per share, respectively, on a pro forma basis (as described above).