Earnings Per Share

9 Months Ended

Mar. 26, 2016

Accounting guidance for participating securities and the two-class method addresses whether awards granted in unvested share-based payment transactions that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and therefore are included in computing earnings per share under the two-class method. Participating securities are securities that may participate in dividends with common stock and the two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and other shareholders, based on their respective rights to receive dividends. Certain restricted stock awards granted under our equity plans are considered participating securities as these awards receive non-forfeitable dividends at the same rate as common stock.

The computations of our basic and diluted earnings per share for the three and nine months ended March 26, 2016 and March 28, 2015 are as follows:



	Three Months Ended						Nine Months Ended
	March 26, 2016			March 28, 2015			March 26, 2016			March 28, 2015
Net income	$	17,854		$	12,429		$	52,611		$	45,750
Less: Income allocable to participating securities	(270		)	(235		)	(768		)	(771		)
Net income available to common stockholders	$	17,584		$	12,194		$	51,843		$	44,979
Basic earnings per share (shares in thousands):
Weighted average number of shares outstanding, basic	19,529			19,679			19,640			19,653
Basic earnings per common share:
Basic earnings per share	$	0.90		$	0.62		$	2.64		$	2.29
Diluted earnings per share (shares in thousands):
Weighted average number of shares outstanding, basic	19,529			19,679			19,640			19,653
Weighted average effect of assumed exercise of stock options	199			395			227			384
Weighted average number of shares outstanding, diluted	19,728			20,074			19,867			20,037
Diluted earnings per common share:
Diluted earnings per share	$	0.89		$	0.61		$	2.61		$	2.24

We excluded potential common shares related to our outstanding equity compensation grants of 308,000 and 4,000 for the three months ended March 26, 2016 and March 28, 2015, respectively, and 257,000 and 80,000 for the nine months ended March 26, 2016 and March 28, 2015, respectively, from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive.