Income Per Share

9 Months Ended

May 27, 2023

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 27, 2023		May 28, 2022		May 27, 2023		May 28, 2022
Net income available to shareholders	$	24,276	$	25,067	$	76,043	$	77,223
Allocation of net income for Basic:
Common Stock	$	20,394	$	21,037	$	63,882	$	64,835
Class B Common Stock		3,882		4,030		12,161		12,388
	$	24,276	$	25,067	$	76,043	$	77,223
Weighted average number of shares for Basic:
Common Stock		15,087		15,170		15,084		15,211
Class B Common Stock		3,590		3,632		3,590		3,632
		18,677		18,802		18,674		18,843
Income per share for Basic:
Common Stock	$	1.35	$	1.39	$	4.23	$	4.26
Class B Common Stock	$	1.08	$	1.11	$	3.39	$	3.41

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 27, 2023 and May 28, 2022, 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 27, 2023 and May 28, 2022 (in thousands, except per share data):


	Thirteen weeks ended May 27, 2023						Thirty-nine weeks ended May 27, 2023
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	20,394		15,087	$	1.35	$	63,882		15,084	$	4.23
Add: effect of dilutive potential common shares
Share-Based Awards		—		71				—		77
Class B Common Stock		3,882		3,590				12,161		3,590
As reported – Diluted	$	24,276		18,748	$	1.29	$	76,043		18,751	$	4.06


	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

Share-based awards that would result in the issuance of 37,746 and 55,970 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and thirty-nine weeks ended May 27, 2023 because they were anti-dilutive. 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.