Income Per Share

6 Months Ended

Feb. 29, 2020

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				Twenty-Six Weeks Ended
	February 29, 2020		February 23, 2019		February 29, 2020		February 23, 2019
Net income available to shareholders	$	34,680	$	47,606	$	82,922	$	85,926
Allocation of net income for Basic:
Common Stock	$	29,129	$	39,923	$	69,654	$	72,061
Class B Common Stock		5,551		7,683		13,268		13,865
	$	34,680	$	47,606	$	82,922	$	85,926
Weighted average number of shares for Basic:
Common Stock		15,293		15,428		15,300		15,430
Class B Common Stock		3,643		3,710		3,643		3,710
		18,936		19,138		18,943		19,140
Income per share for Basic:
Common Stock	$	1.90	$	2.59	$	4.55	$	4.67
Class B Common Stock	$	1.52	$	2.07	$	3.64	$	3.74

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 twenty-six weeks ended February 29, 2020 and February 23, 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 tables set forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019 (in thousands, except per share data):

	Thirteen weeks ended February 29, 2020						Twenty-six weeks ended February 29, 2020
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	29,129		15,293	$	1.90	$	69,654		15,300	$	4.55
Add: effect of dilutive potential common shares
Share-Based Awards		—		169				—		171
Class B Common Stock		5,551		3,643				13,268		3,643
As reported – Diluted	$	34,680		19,105	$	1.82	$	82,922		19,114	$	4.34

	Thirteen Weeks Ended February 23, 2019						Twenty-Six Weeks Ended February 23, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	39,923		15,428	$	2.59	$	72,061		15,430	$	4.67
Add: effect of dilutive potential common shares
Share-Based Awards		—		94				—		118
Class B Common Stock		7,683		3,710				13,865		3,710
As reported – Diluted	$	47,606		19,232	$	2.48	$	85,926		19,258	$	4.46

Share-based awards that would result in the issuance of 667 and 423 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 29, 2020 because they were anti-dilutive. Share-based awards that would result in the issuance of 195 and 754 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 23, 2019 because they were anti-dilutive.