Note 2. Net Income per Share

The Company’s non-vested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by Accounting Standards Codification (“ASC”) Topic 260, “Earnings Per Share”. Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period.

The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the thirteen and thirty-nine weeks ended June 3, 2017 and May 28, 2016, respectively:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	June 3,		May 28,		June 3,		May 28,
	2017		2016		2017		2016
Net income as reported	$	62,836	$	64,816	$	170,683	$	169,370
Less: Distributed net income available to participating securities		(39)		(81)		(151)		(251)
Less: Undistributed net income available to participating securities		(107)		(170)		(309)		(442)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	62,690	$	64,565	$	170,223	$	168,677
Add: Undistributed net income allocated to participating securities		107		170		309		442
Less: Undistributed net income reallocated to participating securities		(106)		(170)		(307)		(441)

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	62,691	$	64,565	$	170,225	$	168,678
Denominator:
Weighted average shares outstanding for basic net income per share		56,779		61,133		56,593		61,206
Effect of dilutive securities		485		236		435		158
Weighted average shares outstanding for diluted net income per share		57,264		61,369		57,028		61,364
Net income per share Two-class method:
Basic	$	1.10	$	1.06	$	3.01	$	2.76
Diluted	$	1.09	$	1.05	$	2.98	$	2.75

There were no antidilutive stock options included in the computation of diluted earnings per share for the thirteen and thirty-nine week periods ended June 3, 2017. Antidilutive stock options of 639 and 1,009 were not included in the computation of diluted earnings per share for the thirteen and thirty-nine week periods ended May 28, 2016, respectively.