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				Twenty-six weeks ended
	February 27, 2016		February 28, 2015		February 27, 2016		February 28, 2015

Net income	$	23,498	$	25,446	$	59,388	$	62,859

Allocation of net income for Basic:
Common Stock	$	18,691	$	20,182	$	47,232	$	49,834
Class B Common Stock		4,704		5,041		11,896		12,472
Unvested participating shares		103		223		260		553
	$	23,498	$	25,446	$	59,388	$	62,859

Weighted average number of shares for Basic:
Common Stock		15,241		15,185		15,230		15,156
Class B Common Stock		4,795		4,741		4,795		4,741
Unvested participating shares		96		192		95		192
		20,132		20,118		20,120		20,089

Earnings per share for Basic:
Common Stock	$	1.23	$	1.33	$	3.10	$	3.29
Class B Common Stock	$	0.98	$	1.06	$	2.48	$	2.63

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 27, 2016, 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 as it was the more dilutive of the two methods. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and twenty-six weeks ended February 27, 2016 (in thousands, except per share data):

	Thirteen weeks ended February 27, 2016							Twenty-six weeks ended February 27, 2016
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS

As reported - Basic	$	18,691			15,241	$	1.23	$	47,232			15,230	$	3.10

Add: effect of dilutive potential common shares
Share-based awards		—			102				—			102
Class B Common Stock		4,704			4,795				11,896			4,795

Add: Undistributed earnings allocated to unvested participating shares		100			—				253			—

Less: Undistributed earnings reallocated to unvested participating shares		(94	)		—				(240	)		—

Diluted EPS – Common Stock	$	23,401			20,138	$	1.16	$	59,141			20,127	$	2.94

Share-based awards that would result in the issuance of 700 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 27, 2016 because they were anti-dilutive. Share-based awards that would result in the issuance of 3,909 shares of Common Stock were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended February 27, 2016 because they were anti-dilutive.

For the thirteen and twenty-six weeks ended February 28, 2015, 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 as it was the more dilutive of the two methods. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and twenty-six weeks ended February 28, 2015 (in thousands, except per share data):

	Thirteen weeks ended February 28, 2015							Twenty-six weeks ended February 28, 2015
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS

As reported - Basic	$	20,182			15,185	$	1.33	$	49,834			15,156	$	3.29

Add: effect of dilutive potential common shares
Share-based awards		—			139				—			131
Class B Common Stock		5,041			4,741				12,472			4,741

Add: Undistributed earnings allocated to unvested participating shares		217			—				540			—

Less: Undistributed earnings reallocated to unvested participating shares		(205	)		—				(511	)		—

Diluted EPS – Common Stock	$	25,235			20,065	$	1.26	$	62,335			20,028	$	3.11

Share-based awards that would result in the issuance of 25,901 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 28, 2015 because they were anti-dilutive. Share-based awards that would result in the issuance of 11,903 shares of Common Stock were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended February 28, 2015 because they were anti-dilutive.