Earnings Per Share

3 Months Ended

Oct. 01, 2016

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 months ended October 1, 2016 and September 26, 2015 are as follows:



	Three Months Ended
	October 1, 2016			September 26, 2015
Net income	10,050			16,263
Less: Income allocable to participating securities	(138		)	(227		)
Net income available to common stockholders	$	9,912		$	16,036
Basic earnings per share (shares in thousands):
Weighted average shares outstanding, basic	19,453			19,727
Basic earnings per common share:
Basic earnings per share	$	0.51		$	0.81
Diluted earnings per share (shares in thousands):
Weighted average shares outstanding, basic	19,453			19,727
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options	342			274
Weighted average shares outstanding, diluted	19,795			20,001
Diluted earnings per common share:
Diluted earnings per share	$	0.50		$	0.80

We excluded potential common shares related to our outstanding equity compensation grants of 27,000 and 125,000 for the three months ended October 1, 2016 and September 26, 2015 from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive.