Earnings per Share

6 Months Ended

Oct. 29, 2016

Note 11: 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)	10/29/16			10/24/15			10/29/16			10/24/15
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	20,833		$	20,952		$	34,639		$	34,628
Income allocated to participating securities	(103		)	(107		)	(172		)	(185		)

Net income available to common shareholders	$	20,730		$	20,845		$	34,467		$	34,443


Denominator:
Basic weighted average common shares outstanding	49,153			50,493			49,129			50,538
Add:
Contingent common shares	100			178			100			178
Stock option dilution	258			368			325			360

Diluted weighted average common shares outstanding	49,511			51,039			49,554			51,076

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.

For the quarter ended October 29, 2016, we had outstanding options to purchase 0.4 million shares 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 for the six months ended October 29, 2016, or for the quarter and six months ended October 24, 2015.