Income Per Share

3 Months Ended

Nov. 28, 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
	November 28, 2020		November 30, 2019
Net income available to shareholders	$	41,896	$	48,242
Allocation of net income for Basic:
Common Stock	$	35,171	$	40,526
Class B Common Stock		6,725		7,716
	$	41,896	$	48,242
Weighted average number of shares for Basic:
Common Stock		15,247		15,308
Class B Common Stock		3,643		3,643
		18,890		18,951
Income per share for Basic:
Common Stock	$	2.31	$	2.65
Class B Common Stock	$	1.85	$	2.12

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 weeks ended November 28, 2020 and November 30, 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 weeks ended November 28, 2020 and November 30, 2019 (in thousands, except per share data):

	Thirteen weeks ended November 28, 2020
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	35,171		15,247	$	2.31
Add: effect of dilutive potential common shares
Share-Based Awards		—		129
Class B Common Stock		6,725		3,643
As reported – Diluted	$	41,896		19,019	$	2.20

	Thirteen Weeks Ended November 30, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	40,526		15,308	$	2.65
Add: effect of dilutive potential common shares
Share-Based Awards		—		172
Class B Common Stock		7,716		3,643
As reported – Diluted	$	48,242		19,123	$	2.52

Share-based awards that would result in the issuance of 11,008 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 28, 2020 because they were anti-dilutive. Share-based awards that would result in the issuance of 178 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 30, 2019 because they were anti-dilutive.