Net Income Per Share and Weighted Average Shares

9 Months Ended

Apr. 28, 2023

Net Income Per Share and Weighted Average Shares [Abstract]

Net Income Per Share and Weighted Average Shares

9. Net Income Per Share and Weighted Average Shares

Basic consolidated net income per share is computed by dividing consolidated net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue shares of common stock were exercised or converted into shares of common stock and is based upon the weighted average number of shares of common stock and common equivalent shares outstanding during the reporting period. Common equivalent shares related to nonvested stock awards and units issued by the Company are calculated using the treasury stock method. The outstanding nonvested stock awards and units issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The Company’s convertible senior notes and related warrants are calculated using the net share settlement option under the if converted method. Because the principal amount of the convertible senior notes will be settled in cash with any excess conversion value settled in cash or shares of common stock, the convertible senior notes have been excluded from the computation of diluted earnings per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion price of $172.09 as of April 28, 2023. Warrants were excluded from the computation of diluted earnings per share since the warrants’ strike price of $240.93 was greater than the average market price of the Company’s common stock during the period. See Note 4 for additional information regarding the Company’s convertible senior notes.

The following table reconciles the components of diluted earnings per share computations:

	Quarter Ended				Nine Months Ended
	April 28, 2023		April 29, 2022		April 28, 2023		April 29, 2022
Net income per share numerator	$	13,968	$	27,516	$	61,588	$	98,516
Net income per share denominator:
Weighted average shares		22,152,002		23,089,521		22,173,019		23,330,093
Add potential dilution:
Nonvested stock awards and units		102,509		81,379		93,314		79,025
Diluted weighted average shares		22,254,511		23,170,900		22,266,333		23,409,118