EARNINGS PER SHARE

9 Months Ended

Jun. 25, 2021

7. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating securities as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common stockholders.

Basic earnings per common share excludes dilution and is calculated by dividing the net earnings allocated to common stock by the weighted-average number of common stock outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common stock by the weighted-average number of shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:


			Three months ended						Nine months ended
(in thousands, except per share data)			June 25, 2021			June 26, 2020			June 25, 2021			June 26, 2020
Numerator:
Net income	$	175,297		$	24,078		$	385,296		$	98,061
Less: Undistributed earnings allocated to participating securities	3,389			519			7,483			2,221
Net income available to common shareholders	$	171,908		$	23,559		$	377,813		$	95,840

Denominator:
Basic weighted average common shares outstanding	46,602			47,207			46,771			47,247
Effect of dilutive securities: Non-participating employee stock options (1)	684			612			742			842
Diluted weighted average common shares outstanding	47,286			47,819			47,513			48,089
Basic earnings per share	$	3.69		$	0.50		$	8.08		$	2.03
Diluted earnings per share	$	3.64		$	0.49		$	7.95		$	1.99


(1) Stock options to purchase approximately 0.0 million and 0.3 million shares of common stock were outstanding during the three months ended June 25, 2021 and June 26, 2020, respectively, but were not included in the calculation of diluted earnings per share as the impact of these options would have been anti-dilutive. Stock options to purchase approximately 0.0 million and 0.1 million shares of common stock were outstanding during the nine months ended June 25, 2021 and June 26, 2020, respectively, but were not included in the calculation of diluted earnings per share as the impact of these options would have been anti-dilutive.