Earnings per Share

12 Months Ended

Apr. 30, 2016

Note 19: Earnings per Share

Certain share-based compensation awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. We grant restricted stock awards that contain 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:

	Year Ended
(Amounts in thousands)	4/30/2016			4/25/2015			4/26/2014
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	79,252		$	70,773		$	55,056
Income allocated to participating securities		(401	)		(395	)		(422	)

Net income available to common shareholders	$	78,851		$	70,378		$	54,634


Denominator:
Basic weighted average common shares outstanding		50,194			51,767			52,386
Add:
Contingent common shares		238			250			1,049
Stock option dilution		333			329			394

Diluted weighted average common shares outstanding		50,765			52,346			53,829

The above values for contingent common shares 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 0.4 million shares for the year ended April 30, 2016 with a weighted average exercise price of $26.69. We excluded the effect of these options from our diluted share calculation since, for each period presented, 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. We did not exclude any outstanding options from the diluted share calculation for the fiscal years ended April 25, 2015 and April 26, 2014.