Earnings per Share

6 Months Ended

Oct. 24, 2015

Note 13: 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:

	Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/24/15			10/25/14			10/24/15			10/25/14
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	20,952		$	19,529		$	34,628		$	32,610
Income allocated to participating securities	(107		)	(103		)	(185		)	(187		)

Net income available to common shareholders	$	20,845		$	19,426		$	34,443		$	32,423


Denominator:
Basic weighted average common shares outstanding	50,493			52,279			50,538			52,235
Add:
Contingent common shares	178			161			178			132
Stock option dilution	368			283			360			295

Diluted weighted average common shares outstanding	51,039			52,723			51,076			52,662

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 quarter and six months ended October 25, 2014, with a weighted average exercise price of $23.63. 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 for the quarter and six months ended October 24, 2015.