Income Per Share

6 Months Ended

Feb. 23, 2019

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				Twenty-six weeks ended
	February 23, 2019		February 24, 2018		February 23, 2019		February 24, 2018
Net income available to shareholders	$	47,606	$	58,378	$	85,926	$	92,584
Allocation of net income for Basic:
Common Stock	$	39,923	$	46,744	$	72,061	$	74,126
Class B Common Stock		7,683		11,634		13,865		18,458
	$	47,606	$	58,378	$	85,926	$	92,584
Weighted average number of shares for Basic:
Common Stock		15,428		15,481		15,430		15,471
Class B Common Stock		3,710		4,816		3,710		4,816
		19,138		20,297		19,140		20,287
Income per share for Basic:
Common Stock	$	2.59	$	3.02	$	4.67	$	4.79
Class B Common Stock	$	2.07	$	2.42	$	3.74	$	3.83

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 twenty-six weeks ended February 23, 2019, 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 table sets forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 23, 2019 (in thousands, except per share data):

	Thirteen weeks ended February 23, 2019						Twenty-six weeks ended February 23, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	39,923		15,428	$	2.59	$	72,061		15,430	$	4.67
Add: effect of dilutive potential common shares
Share-Based Awards		—		94				—		118
Class B Common Stock		7,683		3,710				13,865		3,710
As reported – Diluted	$	47,606		19,232	$	2.48	$	85,926		19,258	$	4.46

Share-based awards that would result in the issuance of 195 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended February 23, 2019 because they were anti-dilutive. Share-based awards that would result in the issuance of 754 shares of Common Stock were excluded from the calculation of diluted income per share for the twenty-six weeks ended February 23, 2019 because they were anti-dilutive.

For the thirteen and twenty-six weeks ended February 24, 2018, 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 table sets forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 24, 2018 (in thousands, except per share data):

	Thirteen weeks ended February 24, 2018						Twenty-six weeks ended February 24, 2018
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	46,744		15,481	$	3.02	$	74,126		15,471	$	4.79
Add: effect of dilutive potential common shares
Share-Based Awards		—		166				—		147
Class B Common Stock		11,634		4,816				18,458		4,816
As reported – Diluted	$	58,378		20,463	$	2.85	$	92,584		20,434	$	4.53

Share-based awards that would result in the issuance of 4,368 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended February 24, 2018 because they were anti-dilutive. Share-based awards that would result in the issuance of 1,001 shares of Common Stock were excluded from the calculation of diluted income per share for the twenty-six weeks ended February 24, 2018 because they were anti-dilutive.