The Company’s non-vested restricted share awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by 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. Effective in fiscal 2016, the Company discontinued its granting of restricted share awards.

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 February 29, 2020 and March 2, 2019, respectively:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 29,		March 2,		February 29,		March 2,
	2020		2019		2020		2019
Net income attributable to MSC Industrial as reported	$	55,500	$	68,424	$	120,918	$	142,656
Less: Distributed net income available to participating securities		—		(5)		(24)		(24)
Less: Undistributed net income available to participating securities		—		(15)		—		(46)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	55,500	$	68,404	$	120,894	$	142,586
Add: Undistributed net income allocated to participating securities		—		15		—		46
Less: Undistributed net income reallocated to participating securities		—		(15)		—		(46)

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	55,500	$	68,404	$	120,894	$	142,586
Denominator:
Weighted average shares outstanding for basic net income per share		55,467		55,139		55,371		55,320
Effect of dilutive securities		120		223		174		299
Weighted average shares outstanding for diluted net income per share		55,587		55,362		55,545		55,619
Net income per share Two-class method:
Basic	$	1.00	$	1.24	$	2.18	$	2.58
Diluted	$	1.00	$	1.24	$	2.18	$	2.56

Potentially dilutive securities		1,096		1,123		1,447		718

Potentially dilutive securities attributable to outstanding stock options, restricted stock units, and performance share units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of MSC common stock, and therefore their inclusion would be anti-dilutive.