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 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017

Net income available to shareholders	$	36,359	$	24,362	$	128,943	$	75,092

Allocation of net income for Basic:
Common Stock	$	30,034	$	19,307	$	104,324	$	59,486
Class B Common Stock	6,325		4,883		24,619		15,068
Unvested participating shares	—		172		—		538
	$	36,359	$	24,362	$	128,943	$	75,092

Weighted average number of shares for Basic:
Common Stock	15,446		15,326		15,463		15,305
Class B Common Stock	4,087		4,846		4,573		4,846
Unvested participating shares	—		136		—		139
	19,533		20,308		20,036		20,290

Income per share for Basic:
Common Stock	$	1.94	$	1.26	$	6.75	$	3.89
Class B Common Stock	$	1.55	$	1.01	$	5.38	$	3.11

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 26, 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 thirty-nine weeks ended May 26, 2018 (in thousands, except per share data):



	Thirteen weeks ended May 26, 2018					Thirty-nine weeks ended May 26, 2018
	Earnings to Common shareholders		Common Shares	Income Per Share		Earnings to Common shareholders		Common Shares	Income Per Share

As reported - Basic	$	30,034	15,446	$	1.94	$	104,324	15,463	$	6.75

Add: effect of dilutive potential common shares
Share-Based Awards	—		154			—		142
Class B Common Stock	6,325		4,087			24,619		4,573

As reported – Diluted	$	36,359	19,687	$	1.85	$	128,943	20,178	$	6.39

Share-based awards that would result in the issuance of 3,155 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended May 26, 2018 because they were anti-dilutive. Share-based awards that would result in the issuance of 1,744 shares of Common Stock were excluded from the calculation of diluted income per share for the thirty-nine weeks ended May 26, 2018 because they were anti-dilutive.

For the thirteen and thirty-nine weeks ended May 27, 2017, 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 thirty-nine weeks ended May 27, 2017 (in thousands, except per share data):



	Thirteen weeks ended May 27, 2017						Thirty-nine weeks ended May 27, 2017
	Earnings to Common shareholders			Common Shares	Income Per Share		Earnings to Common shareholders			Common Shares	Income Per Share

As reported - Basic	$	19,307		15,326	$	1.26	$	59,486		15,305	$	3.89

Add: effect of dilutive potential common shares
Share-Based Awards	—			107			—			103
Class B Common Stock	4,883			4,846			15,068			4,846

Add: Undistributed earnings allocated to unvested participating shares	166			—			523			—

Less: Undistributed earnings reallocated to unvested participating shares	(157		)	—			(496		)	—

As reported – Diluted	$	24,199		20,279	$	1.19	$	74,581		20,254	$	3.68

Share-based awards that would result in the issuance of 12,293 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended May 27, 2017 because they were anti-dilutive. There were 6 share-based awards that were excluded from the calculation of diluted income per share for the thirty-nine weeks ended May 27, 2017 because they were anti-dilutive.