Accrued Dividends Payable And Dividends per Common Share

9 Months Ended

Mar. 02, 2019

Earnings Per Share Reconciliation [Abstract]

Accrued Dividends Payable And Dividends Per Common Share

Accrued Dividends Payable and Dividends per Common Share

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors. The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with generally accepted accounting principles in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day following the last day of such quarter, except for the fourth fiscal quarter.  For the fourth quarter, the Company pays dividends to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date. For the third quarter of fiscal 2019, the dividend is payable on May 16, 2019, to holders of record on May 1, 2019. Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the date of the last quarter for which a dividend was paid. The amount of the accrual appears on the Condensed Consolidated Balance Sheets as “Accrued dividends payable”. At the end of the third quarter of fiscal 2018 on March 3, 2018, the amount of cumulative losses to be recovered before payment of a dividend was $20.5 million.

On our condensed consolidated statement of income, we determine dividends per common share in accordance with the computation in the following table (in thousands, except per share data):

	13 Weeks Ended				39 Weeks Ended
	March 2, 2019		March 3, 2018		March 2, 2019		March 3, 2018
Net income attributable to Cal-Maine Foods, Inc.	$	39,777	$	96,294	$	73,989	$	54,165
Net income attributable to Cal-Maine Foods, Inc. available for dividend	$	39,777	$	—	$	73,989	$	—
1/3 of net income attributable to Cal-Maine Foods, Inc. available for dividend	$	13,245	$	—	$	24,626	$	—
Common stock outstanding (shares)	43,894		43,773
Class A common stock outstanding (shares)	4,800		4,800
Total common stock outstanding (shares)	48,694		48,573
Dividends per common share*	$	0.272	$	—	$	0.506	$	—

*Dividends per common share = 1/3 of Net income (loss) attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock outstanding (shares).