Note 7 - Net Income Per Share

3 Months Ended

Nov. 28, 2015

Net Income Per Share

The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate 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
	November 28,		November 29,
	201 5		201 4

Net income available to shareholders	$	35,890	$	37,413

Allocation of net income for Basic:
Common Stock	$	28,539	$	29,649
Class B Common Stock		7,193		7,434
Unvested participating shares		158		330
	$	35,890	$	37,413

Weighted average number of shares for Basic:
Common Stock		15,218		15,128
Class B Common Stock		4,795		4,741
Unvested participating shares		95		192
		20,108		20,061

Earnings per share for Basic:
Common Stock	$	1.88	$	1.96
Class B Common Stock	$	1.50	$	1.57

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 weeks ended November 28, 2015 and November 29, 2014, 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 weeks ended November 28, 2015 and November 29, 2014 (in thousands, except per share data):

	Thirteen weeks ended November 28, 2015							Thirteen weeks ended November 29, 2014
	Earnings							Earnings
	to Common			Common				to Common			Common
	shareholders			Shares		EPS		shareholders			Shares		EPS

As reported - Basic	$	28,539			15,218	$	1.88	$	29,649			15,128	$	1.96

Add: effect of dilutive potential common shares
Share-Based Awards		—			119				—			139
Class B Common Stock		7,193			4,795				7,434			4,741

Add: Undistributed earnings allocated to unvested participating shares		154			—				323			—

Less: Undistributed earnings reallocated to unvested participating shares		(145	)		—				(305	)		—

Diluted EPS – Common Stock	$	35,741			20,132	$	1.78	$	37,101			20,008	$	1.85

Share-based awards that would result in the issuance of 8,761 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 28, 2015 because they were anti-dilutive. Share-based awards that would result in the issuance of 635 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 29, 2014 because they were anti-dilutive.