Calculation of Earnings per Share

3 Months Ended

Mar. 26, 2017

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, the change in the redemption value for the noncontrolling interest of one of our joint ventures 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 26,		March 27,
	2017		2016

Basic earnings per common share:
Net income attributable to the Company	$	28,428	$	26,182
Change in noncontrolling interest redemption value		520		220
Net income attributable to participating securities		(117)		(110)
Net income attributable to common shareholders	$	28,831	$	26,292

Weighted average common shares outstanding		36,810		37,931
Basic earnings per common share	$	0.78	$	0.69

Diluted earnings per common share:
Net income attributable to common shareholders	$	28,831	$	26,292

Weighted average common shares outstanding		36,810		37,931
Dilutive effect of outstanding equity awards (a)		540		366
Diluted weighted average common shares outstanding		37,350		38,297
Diluted earnings per common share	$	0.77	$	0.69

(a) Excludes 117 and 476 awards for the three months ended March 26, 2017 and March 27, 2016, respectively, as the effect of including such awards would have been antidilutive.