Calculation of Earnings Per Share

3 Months Ended

Mar. 27, 2016

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
	March 27,		March 29,
	2016		2015

Basic earnings per common share:
Net income attributable to the Company	$	26,182	$	22,236
Change in noncontrolling interest redemption value		220		70
Net income attributable to participating securities		(110)		(100)
Net income attributable to common shareholders	$	26,292	$	22,206

Weighted average common shares outstanding		37,931		39,827
Basic earnings per common share	$	0.69	$	0.56

Diluted earnings per common share:
Net income attributable to common shareholders	$	26,292	$	22,206

Weighted average common shares outstanding		37,931		39,827
Dilutive effect of outstanding equity awards (a)		366		683
Diluted weighted average common shares outstanding		38,297		40,510
Diluted earnings per common share	$	0.69	$	0.55

(a) Excludes 476 awards for the three months ended March 27, 2016 and 112 awards for the three months ended March 29, 2015, as the effect of including such awards would have been antidilutive.