Income Per Share

9 Months Ended

May 28, 2022

8. Income Per Share

The Company calculates income per share by allocating income to its unvested participating securities as part of its income per share calculations. The following table sets forth the computation of basic income per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data):


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	May 28, 2022		May 29, 2021		May 28, 2022		May 29, 2021
Net income available to shareholders	$	25,067	$	42,016	$	77,223	$	116,497
Allocation of net income for Basic:
Common Stock	$	21,037	$	35,270	$	64,835	$	97,792
Class B Common Stock		4,030		6,746		12,388		18,705
	$	25,067	$	42,016	$	77,223	$	116,497
Weighted average number of shares for Basic:
Common Stock		15,170		15,238		15,211		15,238
Class B Common Stock		3,632		3,643		3,632		3,643
		18,802		18,881		18,843		18,881
Income per share for Basic:
Common Stock	$	1.39	$	2.31	$	4.26	$	6.42
Class B Common Stock	$	1.11	$	1.85	$	3.41	$	5.13

The Company is required to calculate diluted income per share for Common Stock using the more dilutive of the following two methods:

•

The treasury stock method; or

•

The two-class method assuming a participating security is not exercised or converted.

For the thirteen and thirty-nine weeks ended May 28, 2022 and May 29, 2021, the Company’s diluted income per share assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following tables set forth the computation of diluted income per share of Common Stock for the thirteen and thirty-nine weeks ended May 28, 2022 and May 29, 2021 (in thousands, except per share data):


	Thirteen weeks ended May 28, 2022						Thirty-nine weeks ended May 28, 2022
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	21,037		15,170	$	1.39	$	64,835		15,211	$	4.26
Add: effect of dilutive potential common shares
Share-Based Awards		—		73				—		115
Class B Common Stock		4,030		3,632				12,388		3,632
As reported – Diluted	$	25,067		18,875	$	1.33	$	77,223		18,958	$	4.07


	Thirteen weeks ended May 29, 2021						Thirty-nine weeks ended May 29, 2021
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	35,270		15,238	$	2.31	$	97,792		15,238	$	6.42
Add: effect of dilutive potential common shares
Share-Based Awards		—		170				—		160
Class B Common Stock		6,746		3,643				18,705		3,643
As reported – Diluted	$	42,016		19,051	$	2.21	$	116,497		19,041	$	6.12

Share-based awards that would result in the issuance of 43,246 and 36,373 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and thirty-nine weeks ended May 28, 2022 because they were anti-dilutive. Share-based awards that would result in the issuance of 2,189 and 1,770 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and thirty-nine weeks ended May 29, 2021 because they were anti-dilutive.