Earnings per Share

6 Months Ended

Oct. 24, 2020

Earnings per ShareCertain share-based compensation awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. Prior to fiscal 2019, we granted restricted stock awards that contained non-forfeitable rights to dividends on unvested shares, and we are required to include these participating securities in calculating our basic earnings per common share, using the two-class method.

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/24/20		10/26/19		10/24/20		10/26/19
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	34,935	$	22,593	$	39,733	$	40,662
Income allocated to participating securities	(11)		(31)		(22)		(72)
Net income available to common Shareholders	$	34,924	$	22,562	$	39,711	$	40,590

Denominator:
Basic weighted average common shares outstanding	46,023		46,551		45,966		46,686
Add:
Contingent common shares	148		149		127		148
Stock option dilution	152		179		74		176
Diluted weighted average common shares outstanding	46,323		46,879		46,167		47,010

Earnings per Share:
Basic	$	0.76	$	0.48	$	0.86	$	0.87
Diluted	$	0.75	$	0.48	$	0.86	$	0.86

The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We had outstanding options to purchase 0.6 million shares for the six months ended October 24, 2020, with a weighted average exercise price of $31.94. We excluded the effect of these options from our diluted share calculation since the weighted average exercise price of the options was higher than the average market price and including the options’ effect would have been anti-dilutive. Similarly, we excluded options to purchase 0.3 million shares from the diluted share calculation for the six months ended October 26, 2019.