Income Per Share

6 Months Ended

Feb. 27, 2021

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 27, 2021		February 29, 2020		February 27, 2021		February 29, 2020
Net income available to shareholders	$	32,585	$	34,680	$	74,481	$	82,922
Allocation of net income for Basic:
Common Stock	$	27,349	$	29,129	$	62,520	$	69,654
Class B Common Stock		5,236		5,551		11,961		13,268
	$	32,585	$	34,680	$	74,481	$	82,922
Weighted average number of shares for Basic:
Common Stock		15,223		15,293		15,235		15,300
Class B Common Stock		3,643		3,643		3,643		3,643
		18,866		18,936		18,878		18,943
Income per share for Basic:
Common Stock	$	1.80	$	1.90	$	4.10	$	4.55
Class B Common Stock	$	1.44	$	1.52	$	3.28	$	3.64

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 27, 2021 and February 29, 2020, 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 27, 2021 and February 29, 2020 (in thousands, except per share data):

	Thirteen weeks ended February 27, 2021						Twenty-six weeks ended February 27, 2021
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	27,349		15,223	$	1.80	$	62,520		15,235	$	4.10
Add: effect of dilutive potential common shares
Share-Based Awards		—		171				—		154
Class B Common Stock		5,236		3,643				11,961		3,643
As reported – Diluted	$	32,585		19,037	$	1.71	$	74,481		19,032	$	3.91

	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

Share-based awards that would result in the issuance of 2,379 and 11,566 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 27, 2021 because they were anti-dilutive. 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.