Net Income Per Share

The Company calculates net income per share by allocating income to its unvested participating securities as part of its earnings per share (“EPS”) calculations. The following table sets forth the computation of basic earnings 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 24, 2018		February 25, 2017		February 24, 2018		February 25, 2017

Net income available to shareholders	$	58,378	$	22,516	$	92,584	$	50,730

Allocation of net income for Basic:
Common Stock	$	46,744	$	17,836	$	74,126	$	40,178
Class B Common Stock	11,634		4,518		18,458		10,184
Unvested participating shares	—		162		—		368
	$	58,378	$	22,516	$	92,584	$	50,730

Weighted average number of shares for Basic:
Common Stock	15,481		15,305		15,471		15,295
Class B Common Stock	4,816		4,846		4,816		4,846
Unvested participating shares	—		139		—		140
	20,297		20,290		20,287		20,281

Earnings per share for Basic:
Common Stock	$	3.02	$	1.17	$	4.79	$	2.63
Class B Common Stock	$	2.42	$	0.93	$	3.83	$	2.10

The Company is required to calculate diluted EPS 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 24, 2018, the Company’s diluted EPS 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 earnings 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	EPS		Earnings to Common shareholders		Common Shares	EPS

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

Add: Undistributed earnings allocated to unvested participating shares	—		—			—		—

Less: Undistributed earnings reallocated to unvested participating shares	—		—			—		—

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 earnings 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 earnings per share for the twenty-six weeks ended February 24, 2018 because they were anti-dilutive.

For the thirteen and twenty-six weeks ended February 25, 2017, the Company’s diluted EPS 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 earnings per share of Common Stock for the thirteen and twenty-six weeks ended February 25, 2017 (in thousands, except per share data):



	Thirteen weeks ended February 25, 2017						Twenty-six weeks ended February 25, 2017
	Earnings to Common shareholders			Common Shares	EPS		Earnings to Common shareholders			Common Shares	EPS

As reported - Basic	$	17,836		15,305	$	1.17	$	40,178		15,295	$	2.63

Add: effect of dilutive potential common shares
Share-Based Awards	—			112			—			109
Class B Common Stock	4,518			4,846			10,184			4,846

Add: Undistributed earnings allocated to unvested participating shares	158			—			357			—

Less: Undistributed earnings reallocated to unvested participating shares	(150		)	—			(338		)	—

As reported – Diluted	$	22,362		20,263	$	1.10	$	50,381		20,250	$	2.49

Share-based awards that would result in the issuance of 11,821 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 25, 2017 because they were anti-dilutive. There were no share-based awards that were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended February 25, 2017 because they were anti-dilutive.