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 twenty-six weeks ended March 3, 2018 and March 4, 2017, respectively:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	March 3,		March 4,		March 3,		March 4,
	2018		2017		2018		2017
Net income as reported	$	117,552	$	53,559	$	177,137	$	107,847
Less: Distributed net income available to participating securities		(22)		(36)		(59)		(113)
Less: Undistributed net income available to participating securities		(105)		(84)		(197)		(199)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	117,425	$	53,439	$	176,881	$	107,535
Add: Undistributed net income allocated to participating securities		105		84		197		199
Less: Undistributed net income reallocated to participating securities		(104)		(83)		(196)		(197)

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	117,426	$	53,440	$	176,882	$	107,537
Denominator:
Weighted average shares outstanding for basic net income per share		56,439		56,620		56,363		56,500
Effect of dilutive securities		453		593		335		410
Weighted average shares outstanding for diluted net income per share		56,892		57,213		56,698		56,910
Net income per share Two-class method:
Basic	$	2.08	$	0.94	$	3.14	$	1.90
Diluted	$	2.06	$	0.93	$	3.12	$	1.89

There were no antidilutive stock options included in the computation of diluted earnings per share for the thirteen and twenty-six-week periods ended March 3, 2018 and March 4, 2017, respectively.