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Earnings per Share
 9 Months Ended
Jan. 28, 2017
Earnings per Share  
Earnings per Share

 

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

 

Nine Months Ended

 

(Unaudited, amounts in thousands)

 

1/28/17

 

1/23/16

 

1/28/17

 

1/23/16

 

Numerator (basic and diluted):

 

 

 

 

 

 

 

 

 

Net income attributable to La-Z-Boy Incorporated

 

$
23,286

 

$
21,906

 

$
57,925

 

$
56,534

 

Income allocated to participating securities

 
(115

)
(107

)
(287

)
(292

)

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$
23,171

 

$
21,799

 

$
57,638

 

$
56,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 
48,914

 
50,038

 
49,057

 
50,371

 

Add:

 

 

 

 

 

 

 

 

 

Contingent common shares

 
155

 
171

 
155

 
172

 

Stock option dilution

 
315

 
330

 
320

 
337

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 
49,384

 
50,539

 
49,532

 
50,880

 

 

 

 

 

 

 

 

 

 

 

 

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 nine months ended January 23, 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 quarter and nine months ended January 28, 2017.