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 27, 2017		May 28, 2016		May 27, 2017		May 28, 2016

Net income available to shareholders	$	24,362	$	30,144	$	75,092	$	89,532

Allocation of net income for Basic:
Common Stock	$	19,307	$	23,939	$	59,486	$	71,172
Class B Common Stock	4,883		6,061		15,068		17,956
Unvested participating shares	172		144		538		404
	$	24,362	$	30,144	$	75,092	$	89,532

Weighted average number of shares for Basic:
Common Stock	15,326		15,253		15,305		15,238
Class B Common Stock	4,846		4,827		4,846		4,805
Unvested participating shares	136		97		139		96
	20,308		20,177		20,290		20,139

Earnings per share for Basic:
Common Stock	$	1.26	$	1.57	$	3.89	$	4.67
Class B Common Stock	$	1.01	$	1.26	$	3.11	$	3.74

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 27, 2017, 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. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and thirty-nine weeks ended May 27, 2017 (in thousands, except per share data):



	Thirteen weeks ended May 27, 2017						Thirty-nine weeks ended May 27, 2017
	Earnings to Common shareholders			Common Shares	EPS		Earnings to Common shareholders			Common Shares	EPS

As reported - Basic	$	19,307		15,326	$	1.26	$	59,486		15,305	$	3.89

Add: effect of dilutive potential common shares
Share-Based Awards	—			107			—			103
Class B Common Stock	4,883			4,846			15,068			4,846

Add: Undistributed earnings allocated to unvested participating shares	166			—			523			—

Less: Undistributed earnings reallocated to unvested participating shares	(157		)	—			(496		)	—

Diluted EPS – Common Stock	$	24,199		20,279	$	1.19	$	74,581		20,254	$	3.68

Share-based awards that would result in the issuance of 12,293 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 27, 2017 because they were anti-dilutive. There were 6 share-based awards that were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 27, 2017 because they were anti-dilutive.

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 ended May 28, 2016						Thirty-nine weeks ended May 28, 2016
	Earnings to Common shareholders			Common Shares	EPS		Earnings to Common shareholders			Common 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.