Income Per Share

9 Months Ended

May 25, 2019

8. 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 25, 2019		May 26, 2018		May 25, 2019		May 26, 2018
Net income available to shareholders	$	47,220	$	36,359	$	133,146	$	128,943
Allocation of net income for Basic:
Common Stock	$	39,563	$	30,034	$	111,626	$	104,324
Class B Common Stock		7,657		6,325		21,520		24,619
	$	47,220	$	36,359	$	133,146	$	128,943
Weighted average number of shares for Basic:
Common Stock		15,341		15,446		15,400		15,463
Class B Common Stock		3,710		4,087		3,710		4,573
		19,051		19,533		19,110		20,036
Income per share for Basic:
Common Stock	$	2.58	$	1.94	$	7.25	$	6.75
Class B Common Stock	$	2.06	$	1.55	$	5.80	$	5.38

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 25, 2019, 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 25, 2019 (in thousands, except per share data):

	Thirteen Weeks Ended May 25, 2019						Thirty-Nine Weeks Ended May 25, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	39,563		15,341	$	2.58	$	111,626		15,400	$	7.25
Add: effect of dilutive potential common shares
Share-Based Awards		—		117				—		110
Class B Common Stock		7,657		3,710				21,520		3,710
As reported – Diluted	$	47,220		19,168	$	2.46	$	133,146		19,220	$	6.93

Share-based awards that would result in the issuance of 797 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended May 25, 2019 because they were anti-dilutive. Share-based awards that would result in the issuance of 909 shares of Common Stock were excluded from the calculation of diluted income per share for the thirty-nine weeks ended May 25, 2019 because they were anti-dilutive.

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.