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				Thirty-nine weeks ended
	May 28,		May 30,		May 28,		May 30,
	2016		2015		2016		2015

Net income	$	30,144	$	32,499	$	89,532	$	95,358

Allocation of net income for Basic:
Common Stock	$	23,939	$	25,817	$	71,172	$	75,650
Class B Common Stock		6,061		6,483		17,956		18,954
Unvested participating shares		144		199		404		754
	$	30,144	$	32,499	$	89,532	$	95,358

Weighted average number of shares for Basic:
Common Stock		15,253		15,207		15,238		15,173
Class B Common Stock		4,827		4,773		4,805		4,752
Unvested participating shares		97		134		96		173
		20,177		20,114		20,139		20,098

Earnings per share for Basic:
Common Stock	$	1.57	$	1.70	$	4.67	$	4.99
Class B Common Stock	$	1.26	$	1.36	$	3.74	$	3.99

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 thirty-nine weeks ended May 28, 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 thirty-nine weeks ended May 28, 2016 (in thousands, except per share data):

	Thirteen weeks							Thirty-nine weeks
	ended May 28, 2016							ended May 28, 2016
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			Shares		EPS

As reported - Basic	$	23,939			15,253	$	1.57	$	71,172			15,238	$	4.67

Add: effect of dilutive potential common shares
Share-based awards		—			103				—			98
Class B Common Stock		6,061			4,827				17,956			4,805

Add: Undistributed earnings allocated to unvested participating shares		141			—				395			—

Less: Undistributed earnings reallocated to unvested participating shares		(134	)		—				(374	)		—

Diluted EPS – Common Stock	$	30,007			20,183	$	1.49	$	89,149			20,141	$	4.43

Share-based awards that would result in the issuance of 14,959 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 28, 2016 because they were anti-dilutive. Share-based awards that would result in the issuance of 6,716 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 28, 2016 because they were anti-dilutive.

For the thirteen and thirty-nine weeks ended May 30, 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 thirty-nine weeks ended May 30, 2015 (in thousands, except per share data):

	Thirteen weeks							Thirty-nine weeks
	ended May 30, 2015							ended May 30, 2015
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			Shares		EPS

As reported - Basic	$	25,817			15,207	$	1.70	$	75,650			15,173	$	4.99

Add: effect of dilutive potential common shares
Share-based awards		—			138				—			132
Class B Common Stock		6,483			4,773				18,954			4,752

Add: Undistributed earnings allocated to unvested participating shares		194			—				737			—

Less: Undistributed earnings reallocated to unvested participating shares		(184	)		—				(697	)		—

Diluted EPS – Common Stock	$	32,310			20,118	$	1.61	$	94,644			20,057	$	4.72

Share-based awards that would result in the issuance of 25,726 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 30, 2015 because they were anti-dilutive. Share-based awards that would result in the issuance of 10,429 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 30, 2015 because they were anti-dilutive.