Accrued Dividends Payable And Dividends per Common Share

9 Months Ended

Feb. 26, 2022

Accrued Dividends Payable And Dividends Per Common Share [Abstract]

Accrued Dividends Payable And Dividends Per Common Share

Note 6 - 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 GAAP

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.

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 most recent quarter for which a dividend was paid. For the third quarter of fiscal 2022, we will pay a cash dividend

of approximately $

0.125

 per share to holders of our Common Stock and Class A Common Stock. The amount of the accrual is

recorded in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets.

On our Condensed Consolidated Statements of Income, we determine dividends per common share in accordance with the

computation in the following table (in thousands, except per share data):

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 26, 2022

February 27, 2021

February 26, 2022

February 27, 2021

Net income attributable to Cal-Maine Foods,

Inc.

$

39,517

$

13,548

$

22,664

$

6,304

Cumulative losses to be recovered prior to

payment of divided at beginning of period

(21,097)

(8,614)

(4,244)

(1,370)

Net income available for dividend

$

18,420

$

4,934

$

18,420

$

4,934

1/3 of net income attributable to Cal-Maine

Foods, Inc. available for dividend

6,140

1,645

6,140

1,645

Common stock outstanding (shares)

44,140

44,056

Class A common stock outstanding (shares)

4,800

4,800

Total common stock outstanding (shares)

48,940

48,856

Dividends per common share*

$

0.125

$

0.034

$

0.125

$

0.034

*Dividends per common share =

1/3

 of Net income attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock

outstanding (shares).