Calculation of Earnings Per Share

9 Months Ended

Sep. 27, 2015

3.Calculation of Earnings Per Share

We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. We consider time-based restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to the Company in determining net income attributable to common shareholders.

Additionally, in accordance with Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity, the change in the redemption value for the noncontrolling interest of PJ Denver, LLC increases or decreases income attributable to common shareholders.

The calculations of basic and diluted earnings per common share are as follows (in thousands, except per-share data):

	Three Months Ended						Nine Months Ended
	Sept. 27,			Sept. 28,			Sept. 27,			Sept. 28,
	2015			2014			2015			2014

Basic earnings per common share:
Net income attributable to the Company	$	17,971		$	16,075		$	50,987		$	52,134
Decrease (increase) in noncontrolling interest redemption value	49			(42		)	192			(81		)
Net income attributable to participating securities	(73		)	(77		)	(223		)	(295		)

Net income attributable to common shareholders	$	17,947		$	15,956		$	50,956		$	51,758

Weighted average common shares outstanding	39,394			40,739			39,640			41,248

Basic earnings per common share	$	0.46		$	0.39		$	1.29		$	1.25


Diluted earnings per common share:
Net income attributable to common shareholders	$	17,947		$	15,956		$	50,956		$	51,758

Weighted average common shares outstanding	39,394			40,739			39,640			41,248
Dilutive effect of outstanding equity awards (a)	501			647			570			773

Diluted weighted average common shares outstanding	39,895			41,386			40,210			42,021

Diluted earnings per common share	$	0.45		$	0.39		$	1.27		$	1.23

(a)

Excludes 219 and 234 awards for the three and nine months ended September 27, 2015 and 270 and 208 awards for the three and nine months ended September 28, 2014, because their inclusion would have had an antidilutive effect.