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 2, 2018 and June 3, 2017, respectively:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	June 2,		June 3,		June 2,		June 3,
	2018		2017		2018		2017
Net income as reported	$	79,069	$	62,836	$	256,206	$	170,683
Less: Distributed net income available to participating securities		(14)		(39)		(73)		(151)
Less: Undistributed net income available to participating securities		(56)		(107)		(248)		(309)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	78,999	$	62,690	$	255,885	$	170,223
Add: Undistributed net income allocated to participating securities		56		107		248		309
Less: Undistributed net income reallocated to participating securities		(55)		(106)		(247)		(307)

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	79,000	$	62,691	$	255,886	$	170,225
Denominator:
Weighted average shares outstanding for basic net income per share		56,420		56,779		56,382		56,593
Effect of dilutive securities		384		485		351		435
Weighted average shares outstanding for diluted net income per share		56,804		57,264		56,733		57,028
Net income per share Two-class method:
Basic	$	1.40	$	1.10	$	4.54	$	3.01
Diluted	$	1.39	$	1.09	$	4.51	$	2.98

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 2, 2018 and June 3, 2017, respectively.