Earnings Per Share

6 Months Ended

Dec. 26, 2015

Accounting guidance for participating securities and the two-class method, addresses whether awards granted in unvested share-based payment transactions that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and therefore are included in computing earnings per share under the two-class method. Participating securities are securities that may participate in dividends with common stock and the two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and other shareholders, based on their respective rights to receive dividends. Certain restricted stock awards granted under our equity plans are considered participating securities as these awards receive non-forfeitable dividends at the same rate as common stock.

The computations of our basic and diluted earnings per share for the three and six months ended December 26, 2015 and December 27, 2014 are as follows:



	Three Months Ended						Six Months Ended
	December 26, 2015			December 27, 2014			December 26, 2015			December 27, 2014
Net income	$	18,493		$	16,953		$	34,756		$	33,321
Less: Income allocable to participating securities	(271		)	(303		)	(498		)	(536		)
Net income available to common stockholders	$	18,222		$	16,650		34,258			32,785
Basic earnings per share (shares in thousands):
Weighted average number of shares outstanding, basic	19,665			19,654			19,696			19,641
Basic earnings per common share:
Basic earnings per share	$	0.93		$	0.85		1.74			1.67
Diluted earnings per share (shares in thousands):
Weighted average number of shares outstanding, basic	19,665			19,654			19,696			19,641
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options	205			385			240			378
Weighted average number of shares outstanding, diluted	19,870			20,039			19,936			20,019
Diluted earnings per common share:
Diluted earnings per share	$	0.92		$	0.83		1.72			1.64

We excluded potential common shares related to our outstanding equity compensation grants of 276,000 and 90,000 for the three months ended December 26, 2015 and December 27, 2014, respectively, and 204,000 and 190,000 for the six months ended December 26, 2015 and December 27, 2014, respectively, from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive.