Income Per Share

3 Months Ended

Nov. 26, 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
	November 26, 2022		November 27, 2021
Net income available to shareholders	$	33,957	$	33,705
Allocation of net income for Basic:
Common Stock	$	28,525	$	28,291
Class B Common Stock		5,432		5,414
	$	33,957	$	33,705
Weighted average number of shares for Basic:
Common Stock		15,082		15,229
Class B Common Stock		3,590		3,643
		18,672		18,872
Income per share for Basic:
Common Stock	$	1.89	$	1.86
Class B Common Stock	$	1.51	$	1.49

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 weeks ended November 26, 2022 and November 27, 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 weeks ended November 26, 2022 and November 27, 2021 (in thousands, except per share data):


	Thirteen weeks ended November 26, 2022
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	28,525		15,082	$	1.89
Add: effect of dilutive potential common shares
Share-Based Awards		—		82
Class B Common Stock		5,432		3,590
As reported – Diluted	$	33,957		18,754	$	1.81


	Thirteen weeks ended November 27, 2021
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	28,291		15,229	$	1.86
Add: effect of dilutive potential common shares
Share-Based Awards		—		154
Class B Common Stock		5,414		3,643
As reported – Diluted	$	33,705		19,026	$	1.77

Share-based awards that would result in the issuance of 49,246 of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 26, 2022 because they were anti-dilutive. Share-based awards that would result in the issuance of 11,119 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 27, 2021 because they were anti-dilutive.